World Federation of Exchanges recommends global blockchain solution

Crazy Commentary : The World Federation of Exchanges (WFE) strongly recommends a global solution for distributed ledger technology and proposes the introduction of a regulatory sandbox environment for distributed ledger technology. WFE encourages regulators and the industry to conduct further cooperation to better understand blockchain technology and avoid unexpected consequences in rule-making. The association will specifically formulate rules, codes of conduct and industry best practices based on application cases and events.

Translation: Nicole

The World Federation of Exchanges (WFE) has strongly recommended a global approach to distributed ledger technology in response to the European Securities and Markets Authority’s (ESMA) blockchain discussions.

The WFE - which comprises more than 200 exchanges and central counterparties (CCPs) around the world - said it supported the European approach, but said global consensus was also important because of its "borderless" nature.

The team proposed the introduction of a regulatory sandbox for distributed ledger technology as the initiative “would be a useful tool within the wider fintech industry.”

The WFE encourages further collaboration between regulators and the wider industry to better understand blockchain technology and avoid unintended consequences in rulemaking.

WFE CEO Nandini Sukumar explained that the association will invest more time in getting its members to “build a consensus” on blockchain-related matters.

She added:

“The association will develop rules, codes of conduct and industry best practices specifically based on application cases and events.”

ESMA’s discussion paper – published in June this year – aims to explore more of the potential benefits and risks of blockchain, as well as the impact that regulation could have on it.