Myanmar's Yangon Stock Exchange to build blockchain-based exchange

Rage Comment : Japan's Daiwa Securities Group and Myanmar's Yangon Stock Exchange have cooperated to integrate Daiwa's equity transactions into the Yangon trading platform. Myanmar's Yangon Stock Exchange will be the first stock exchange to conduct public trading on a blockchain-based exchange, and it is likely to lead other stock exchanges to keep up with the blockchain trend. Japan has also been committed to paving the way for blockchain. The Japanese Council has also passed a series of virtual currency regulations and revised the Banking Law to promote the development of blockchain technology.

Translation: Nicole

Daiwa Securities Group (Tokyo-based stock brokerage firm) will work with Myanmar’s Yangon Stock Exchange (YSX) to establish a blockchain-based stock exchange by integrating Daiwa equity trading into the Yangon trading platform. Currently, Daiwa and YSX are testing the blockchain platform and are discussing with government officials to fully apply the blockchain concept to all YSX transactions after completing several months of successful testing within two years.

Daiwa Research Institute Holdings and other units of Daiwa tested the system using servers in Myanmar from June to September 2016. Nikkei said the test was to see how the system would work in the country, which is plagued by frequent power outages and downed phone lines, by assuming blockchain was used to connect the Yangon Stock Exchange and local brokerage firms.

YSX will be the first stock exchange to be publicly traded on a blockchain-based exchange and could lead to other stock exchanges also following the growing blockchain trend in the FinTech (financial technology) industry.

Yamato is the second largest securities brokerage firm in Japan, which has recently blazed a new trail in the blockchain space. For example, the Japanese Council passed a series of regulations and revised banking laws on virtual currencies on May 25, 2016. Recently, 42 local and regional banks in Japan joined a new blockchain alliance focused on cross-border payments. The alliance has both large and small institutions as members. The launch of the alliance came after Japanese financial services company SBI announced that it would establish its own digital currency exchange in Japan.