Embedded Supervision: How to Build Regulation into Blockchain Finance

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Embedded Supervision: How to Build Regulation into Blockchain Finance

The spread of distributed ledger technology (DLT) in finance could help to improve the efficiency and quality of supervision. This paper makes the case for embedded supervision, i.e., a regulatory framework that provides for compliance in tokenized markets to be automatically monitored by reading the market’s ledger, thus reducing the need for firms to actively collect, verify and deliver data.

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