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Global regulators attuned to blockchain risks 

June 7, 2016

James Eyers, The Sydney Morning Herald

The use of blockchain in financial services would need to be carefully regulated with access restricted to only approved participants and institutions may be required to use kill switches to stop computers automatically executing in times of stress.

Greg Medcraft, who has just relinquished the chair of the International Organisation of Securities Commissions (IOSCO), told The Australian Financial Review that blockchains must be able to operate with each other and the financial services companies that use them will have to stand behind the technology in case it fails. 

Mr Medcraft was commenting on the principles guiding global regulators' assessment of emerging blockchain technology which have been set out for the first time.

Blockchains in the financial services industry would need to be 'permissioned' networks, he said, meaning access is restricted to known parties, in contrast with the open and public blockchain that powers the controversial cryptocurrency bitcoin. Read more

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