France Will Allow Blockchain Platforms For Trading Securities
France will allow Blockchain-based trading of unlisted securities.
According to recent reports, the French government has opened the door to allow fintech companies and banking institutions to begin trading unlisted securities on Blockchain technology-based platforms. The regulation changes cut out the need for middlemen like brokerages or exchanges.
The change comes with a desire to have France grow in its international reputation as a center for finance and technology, hopefully competing with the neighboring London, which currently enjoys a much bigger presence in the field. According to a statement by Finance Minister Bruno Le Maire:
“The use of this new technology will allow fintech firms and other financial actors to develop new ways of trading securities that are faster, cheaper, more transparent and safer.”
According to the statement, listed securities will still be required to pass through trust systems.
The announcement will provide increasing opportunities for banks and other companies to use Blockchain technology to cut out unnecessary mid-level brokers in financial trading. The technology has already been used by a number of large corporations for international business payments and other applications.