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Blockchain-Based Stock Trading has been approved by Regulators in Japan

Blockchain-Based Stock Trading has been approved by Regulators in Japan

The year of 2016 brought along major developments on the blockchain market, with numerous banks and financial institutions considering to make the move, and switch their systems to a blockchain-based one. This is completely understandable, given the benefits of the blockchain network over the traditional system.

For those who do not know, using blockchain for trading can lead to lower costs, faster transactions and more efficient processes. According to recent reports, it seems like the Japanese Financial Services Agency has just allowed the operator of the Tokyo Stock Exchange, the Japan Exchange Group, to go ahead and use the blockchain network for its core trading infrastructure.


According to a recent review posted in a Japanese newspaper, it seems like the Japanese Financial Regulator is now ready to approve uses of the blockchain network, on a basis that depends on the cases presented to them. It’s important to keep in mind the fact that until now, blockchain tech was limited to being used in exchange operations. Now, the new interpretation of the laws coming from the Japanese Financial Services Agency, will allow the Japan Exchange Group and other companies to innovate on the fintech market and implement new solutions, meant to increase efficiency and reduce costs.

However, convincing the regulator was not easy. Numerous tests and research projects were carried out and then presented to the regulator. There is also a wide Japanese blockchain-based consortium, meant to discuss future and current blockchain-related projects, before being implemented on the market. It is thought that further testing of the blockchain network as a stock trading infrastructure will be carried out in the Spring of 2017, and if successful, possibly applied by the end of the year.

This isn’t the world’s first implementation of the blockchain network as a stock trading infrastructure. Not long ago, blockchain applications have also seen adoption in Myanmar, where the Yangon Stock Exchange was connected with several local brokerages via the blockchain technology. The Australian Stock Exchange has also implemented blockchain-based solutions, meant to run together with their clearing system, with the purpose of replacing it entirely in the future, after testing is done completely. These blockchain adoptions will likely further increase the popularity of the technology, and encourage other financial institutions from all around the world to tinker with the idea.

Based on everything that has been outlined so far, what do you personally think about the implementation of the blockchain network for stock exchange in Japan, and the other countries mentioned? Let us know your thoughts in the comment section below.

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