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Esma: It’s ‘too early’ to regulate blockchain

A number of big-name financial services companies are currently developing and testing blockchain technology

In its infancy: blockchain may create or exacerbate some risks, but Esma thinks it is premature to assess the exact nature and level of those risks
In its infancy: blockchain may create or exacerbate some risks, but Esma thinks it is premature to assess the exact nature and level of those risks Photo: Getty Images

Europe's top financial watchdog has said that it is too early to decide whether blockchain technology needs to be regulated.

In a report published on February 7, the European Securities and Markets Authority, or Esma, said blockchain could bring a number of benefits to securities markets including more efficient post-trade processes, enhanced reporting and data management capabilities and reduced costs.

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