World Federation of Exchanges: jurisdictional differences hinder the widespread use of DLT

nnn(WFE) is organized by a number of global stock exchanges, the current release of a report on the adoption of DLT, pointing out that the lack of national central banks on the technical uniform standards of the technology, so that the United States, the World Federation of Exchanges (WFE) DLT’s regulation remains unclear, which hinders the widespread use of the technology.n
nnTranslated by: Inan
nA global stock exchange industry association issued a report on the use of block chains among its members.n
nThe report of the World Federation of Exchanges (WFE) points out that regulatory issues are the biggest challenge of distributed book technology (DLT) in getting broader applications with the UK regulator, the Financial Conduct Authority, The published DLT discussion report echoes.n
nWhile this is not the first time WFE has commented on the use of DLT on stock exchanges, the focus of this report is on enabling members to implement the “need to address or clarify” regulatory areas of interest.n
nThe report states:n
nn”It is important to clarify the legal status of digital assets in order to transfer such assets and to grant benefits to them and to deal with insolvency and insolvency.”n
nnAccording to the association, its members include global developed and emerging market stock exchanges, such as the Nasdaq and the Shanghai Stock Exchange.n
nNeed standardn
nThe report also points out that the lack of digital currency in the unified legal status of the central banks, which is a major challenge for cross-border exchanges.n
nFor example, the report argues that it would not be clear how the law would look at transactions on digital books.n
nThe report also wrote:n
nn”For a fully decentralized DLT program, it is unclear who will be defined in the EU law (ie, what constitutes the assignment, the time of entry, the time of settlement, the law of the management system, etc.).n
nnWFE also warns its members that potential non-financial third-party leadership DLT solutions are potentially risky.n
nThe report concludes:n
nn”The development of DLT solutions that lack formal oversight may have a negative impact on investor protection and orderly markets.”n
nnAccording to reports, last year, WFE surveyed 21 members said it was actively exploring the application of DLT, several of which said it had reserved budget for research and development in the field.n

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