Japan’s Financial Services Authority has this week confirmed that blockchain technology would be used as a trading platform to increase trade efficiency.
Japan Exchange Group (JPX) and the Tokyo Stock Exchange (TSE) will use fintech services underpinned by blockchain as a trading platform after receiving approval from the Japanese Financial Service Authority (FSA) to conduct blockchain-based trading proof-of-concepts this year.
The FSA planned to approve the adoption on a case-by-case basis, with artificial intelligence (AI) pinned as another avenue for the fintech revolution of trading. JPX companies would be able to invest in start-ups working on the development of new technologies for trading, under recently accepted broader interpretations of duty passed by the FSA.
While JPX subsiders were previously limited under the FSA, the group would now be permitted to develop and introduce technologies that could increase efficiency and improve the overall running of Japan’s trading platforms.