The World Federation of Exchanges (WFE) has pushed for a global approach to distributed ledger technology, in response to the European Securities and Markets Authority’s (ESMA) discussion paper on blockchain.
The WFE – which consists of over 200 exchanges and central counterparties (CCPs) worldwide – said it is supportive of a European approach, but a need for global consistency is important due to its “borderless” nature.
The group also suggested the introduction of regulatory sandboxes for distributed ledger technology, as the initiative had been “a useful tool for the wider FinTech industry”.
It encouraged further collaboration between regulators and the wider industry, in order to better understand the technology and avoid unintended consequences from rule making.
WFE’s chief executive officer Nandini Sukumar, explained the association will dedicate more time to “forging a consensus” amongst its members on blockchain issues.
She added it will, “specifically formulate guidelines, codes of conducts and industry best practice as use cases and issues emerge. There is still much to come in this space.”
ESMA’s discussion paper – published in June this year – sought wider knowledge on the potential benefits and risks of blockchain, as well as how it could be impacted by regulation.