- London Stock Exchange Group has stamped its authority over digital assets like cryptocurrency and assigning financial barcodes to them.
- It has distinctly identified ‘digital assets’, ‘digital platforms’, and safety tokens. Combined
- They are now integrated into the SEDOL Masterfile service that it provides worldwide.
Founded on 23rd June 2007, the London Stock Exchange Group has stamped its authority over digital assets like cryptocurrency and assigning financial barcodes to them. Although, it does mean that the currencies will now be regulated by the group but it will be recognized on a larger scale. It has distinctly identified ‘digital assets’, ‘digital platforms’, and safety tokens. Combined, they are now integrated into the SEDOL Masterfile service that it provides worldwide.
Importance of financial barcodes for digital assets
The asset class has been slowly but gradually embraced by institutional traders. The institutionalization of digital assets has prompted the Stock Exchange Group to come up with the bar codes. Intangible assets do have irreparable losses that might hurt investors. The assigning of codes will help assess and monitor situations that led to such losses. Secondly, cryptocurrencies are still looked at with a certain amount of skepticism as Ponzi schemes are amassing in the market. The amount of disdain within investors is pitiful.
Furthermore, the group’s acknowledgment of cryptocurrency as a digital asset is a major step towards global recognition. Financial bodies such as US GAAP do not recognize BTC or any other form of digital asset for tax purposes. As they lack physical substance they do not have a mass appeal currently.
Barcodes are Not a Sign of Regulation of Digital Assets
There are a lot of issues with the regulation of cryptocurrency as there is an absence of a standard for the same. Moreover, it is a decentralized form of storing value without a legal issuer or tender. Hence, it becomes difficult to bring it under surveillance as it will lose its uniqueness. On the flip side, experts say that to bring about a mass appeal the transactions need to be secure and provide safety to investors. A lot of scams and thefts have not allowed to bring in a level of trust among users.
Restrictions have been placed for its trade or sale in various parts of the world but the assigning of bar codes to digital assets might turn the tables for the better.