Introduction
It’s true that blockchain technology is new and complex, but it’s also incredibly valuable. The truth is that it can be used for so much more than just financial transactions, and regulators are starting to realize that. Blockchain technology has the potential to fundamentally change how business works by giving us a way to verify transactions in real-time while also automating many of the tasks currently performed by humans on a manual basis.
Blockchain technology is a regulatory technology that is set to change the way that businesses and regulators interact
Blockchain technology is a regulatory technology that is set to change the way that businesses and regulators interact.
Regulators can use blockchain to track compliance in real time, spot suspicious activity, and track assets. The benefits for regulators are clear: it improves their ability to monitor transactions by making them more transparent than ever before.
In this article we’ll look at how blockchain could benefit regulators in three areas: tracking compliance; spotting suspicious activity; and tracking assets
Blockchain technology allows compliance from the ground up.
Blockchain technology allows compliance from the ground up.
It’s a distributed ledger, which means that all transactions are recorded permanently in an immutable way and cannot be tampered with. This makes it ideal for recording financial transactions, but also has applications well beyond finance–for example, in healthcare or government services. It’s transparent because anyone can see all of the data on any given block at any time; this gives users confidence that they’re getting accurate information when they access a blockchain network (or “chain”).
It’s not just about financial transactions.
The blockchain is not just about financial transactions. It’s a technology that can be used in many different industries, including healthcare and supply chain management. The blockchain is simply a way of storing and sharing data, which means it can be used by many different parties at once instead of being limited to one company or organization.
The best example of this is Ethereum (ETH), which offers smart contracts that allow users to store information on their platform without worrying about security issues or privacy concerns because they’re encrypted by cryptography algorithms.
A diverse range of projects are already underway in areas like healthcare, insurance and identity management.
You might be surprised to learn that blockchain technology is already being used to improve the efficiency of healthcare systems. The nature of blockchain makes it ideal for storing medical records and providing them to patients or doctors as needed, without having to worry about security concerns or data breaches. This means you can spend less time worrying about how secure your information is, knowing that it’s encrypted and stored securely on a public ledger.
Blockchain is also being used in insurance systems–and not just for identity management! Blockchain has been shown to be effective at reducing fraud within this industry as well because all transactions are recorded publicly on a shared ledger that everyone can see but no one person controls (or changes), making them easy for regulators like FINRA or SEC who oversee these industries respectively
There’s no need to wait for regulators to catch up with blockchain tech, because they’re already on board
Regulators are already on board with blockchain technology. They have a vested interest in it, and they know that it can help them achieve their goals. For example, regulators want to make sure that companies comply with regulations and don’t break any laws. If a company is using blockchain technology for financial transactions, it’s easier for regulators to track what’s happening on those transactions and make sure they’re not illegal or fraudulent because everything is being recorded publicly on the blockchain ledger (or distributed ledger).
For example:
- In 2018 alone there were more than 100 ICOs launched by startups around the world–and each one had its own unique token model! This creates an incredible problem for regulators who need accurate information about each token offering so they can determine whether or not existing securities laws apply before making any decisions about whether or not they should allow those offerings into their respective markets.*
It’s time for regulators to get involved in blockchain
As you’re probably aware, blockchain is a regulatory technology. It can be used to track and validate financial transactions, but it also has applications in other industries as well.
For example, the automotive industry is currently undergoing major changes due to self-driving cars and electric vehicles (EVs). These technologies are coming faster than we think–and regulators need to keep up with them if they want to maintain control over this fast-paced industry.
Regulators have already started looking into how blockchain can help them regulate these new technologies:
Conclusion
The world is changing, and it’s time for regulators to get involved in blockchain. The technology has the potential to revolutionize how we do business and interact with each other as humans. We are already seeing this happen through innovative projects like Estonia’s e-Residency program, which allows anyone in the world access to some of the country’s services without having to physically be there. With companies like IBM leading the way with their own projects using blockchain technology, it seems like only a matter of time before everything becomes more efficient – including compliance!
