Northern Thrust: We Need To Be Careful With Blockchain Regulation

Northern Thrust: We Need To Be Careful With Blockchain Regulation

A senior executive at one of the world`s largest international financial services companies has said that market authorities should be careful with Bl

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A senior executive at one of the world`s largest international financial services companies has said that market authorities should be careful with Blockchain regulation.

“A database has never been regulated, and we need to be really careful [about doing that].”, said Justin Chapman, who is head of market advocacy and innovation research at Northern Trust, as quoted by Financial News (fnlondon.com).

Similarly, Bank of England governor Mark Carney spoke about the way blockchain technology should be handled by authorities. According to him, policymakers had to ensure fintech develops in a way that “maximizes the opportunities and minimises the risks for society”.

“After all, the history of financial innovation is littered with examples that led to early booms, growing unintended consequences, and eventual busts.”, he added.

Blockchain regulation any time soon?

There have been calls for regulating the blockchain within many quarters.

The European Commission has said that it monitors blockchain and DLT innovation. They described the technology as both “very promising and challenging”.

However, the European Securities and Markets Authority (ESMA) has recently stated that regulatory action for blockchain technology at this stage is “premature”, concluded their report.

China, on the other hand, has called for legal regulation of blockchain technology. More specifically, the head of Shanhai`s Financial Service Office has expressed its wishes to take the lead in the financial technology sector in China.

“The local regulator would like to tie up with the financial industry and legal communities to see whether Shanghai could lead in the introduction of regulatory framework for the industry.”, said Zheng Yang, director of the Shanghai Municipal Financial Service Office, in an interview with ShanghaiDaily.com (shanghaidaily.com).

Despite of this, it looks like further research is needed for the development of the blockchain technology, elaborated cryptocoinnews.com.

It remains to be seen how the innovative nature of blockchain technology may possibly affect the financial world.

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