Germany’s Federal Financial Supervisory Authority (BaFin): Blockchain can set new standards for financial markets

An internal log published last month by Germany’s top securities regulator contains records on blockchain technology, revealing how the agency reacted internally to the technology and showing how it viewed the emerging technology in its early days.

In a newly published English translation, the agency (Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin) explored the potential applications of distributed ledgers, including their use in cross-border payments, inter-bank transfers and storage of transaction data.

While the English translation is mostly filled with regulatory details, the publication also reflects how Germany’s Federal Financial Supervisory Authority (BaFin) sees the financial system functioning in a future created by blockchain technology, even if that future is far from certain.

The agency said:

“The impact of increased or even full deployment of DLT on the financial industry is still uncertain. However, it appears to have the potential to establish a new standard for financial markets.”

BaFin said identifying the risks that may arise from the use of blockchain technology is “more important than ever” and continued to call on other regulators around the world to take stricter measures on blockchain.

The agency pointed out that it is necessary to ensure that anti-money laundering regulations and clearing and settlement management regulations are complied with, and the lack of central leadership and management in these areas is likely to lead to problems.

The agency previously released a guidance report on Bitcoin and digital currencies, calling Bitcoin and digital currencies "financial instruments in the form of accounting units" rather than legal tender.

Original article: http://www.coindesk.com/bafin-blockchain-lead-new-standard-financial-markets/
By Stan Higgins
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/bafin-blockchain-build-new-standard-financial-market)