French Government Approves Trading of Unlisted Securities via Blockchain Platforms

Not long ago, bitcoin futures begun trading over in the United States, following regulatory approval and the release of these instruments by a couple of securities exchanges. Now, recent reports indicate that a few more countries are also interested in approving these trading instruments, in order to further stimulate the economy.

With this in mind, the French Government has recently given its approval on the trading of unlisted securities, via the use of blockchain technology. Based on this aspect, the new rules that have been adopted by the government will allow banks alongside fintech firms to create their very own blockchain-based platforms that can then be used by the public for the trading of unlisted securities. This change in regulations will allow asset trading at much higher speeds, lower prices, and without the need to depend on a middleman to facilitate the transaction.

According to the French 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."

It is believed that the move is part of France’s plan to become a financial innovation hub in Europe. Apart from this, it is important to point out the fact that during the last couple of months, the French government has been actively working on developing blockchain projects. For instance, a research group was launched back in May to help research blockchain potential, implementations and possible applications in the public sector.

The trading of unlisted securities means that people will now be able to trade other forms of securities, without requiring prior approval from the government. In other words, until bitcoin is officially accepted as an asset compatible with the trading of listed securities, people will be able to trade the asset via these new exchanges. At this time, it is unclear which company will go ahead and create a platform to facilitate this, yet it is expected that we will find out in the near future.

Based on everything that has been outlined so far, France’s decision to approve the trading of unlisted securities will surely bring a positive boost to the economy. While trading numbers and volumes cannot yet be speculated, analysts believe that such platform will turn out to be successful for the market.