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Blockchain has been deemed as one of the ravishing innovations. Following the gains in the crypto market, many investors seek experience in blockchain settlements on the traditional markets. Following the market demand, the Boston Security Token Exchange (BSTX), filed an application with the United States Securities and Exchange Commission (SEC). Recently, the new facility of the Boston-based BOX exchange, received a regulatory approval from the financial regulator to operate as a blockchain-based securities exchange.
BSTX’s proposal does not includes crypto trading
According to the approval report, it is noted that the proposal by the blockchain securities exchange does not involve crypto trading. Indeed, the firm can not integrate any other form of use of blockchain technology.
Boston Security Token Exchange was jointly launched by BOX and tZERO, Overstock’s blockchain firm. The firm originally seeked for an approval for launching publicly-traded and registered security tokens.
However, the financial regulator approval to operate as a national securities exchange allows the firm to use the technol;ogy for faster settlements. According to the US SEC, they have observed that the proposal does not involve the trading of digital tokens and such a proposal does not involve the trading of digital tokens or any other additional use of the technology.
SEC had denied for blockchain services previously
The US financial authority has previously denied the permission to offer digital assets services. The latest approval allowed the facility to use a proprietary market data feed. Additionally, the firm will also use the technology to help investors experience faster transaction times on the same day or the next day. Indeed, the standard two business days (T+2) settlement cycle will now be disrupted.
BSTX ensures Regulatory Services Agreement with FINRA
Along with the green signal, the regulator placed four conditions for BOX in line with the securities platform. The conditions include joining all relevant national market system plans related to equities trading. BSTX will be ensuring a Regulatory Services Agreement with FINRA. Moreover, the conditions also include statements regarding Intermarket Surveillance Group membership for the BSTX facility and an applicable governance structure.
