BIS paper: DLT opens possibility of ‘embedded supervision’

Distributed ledger data would be useful for supervision, but must be trustworthy, author says

The move to risk‑based supervision

Rather than trying to fit crypto assets into existing regulation, new technology could be used to oversee distributed ledger-based products, new research argues.

But the author also says a means needs to be found of ensuring data is trustworthy.

Raphael Auer, author of the Bank for International Settlements’ working paper, says distributed ledger technology (DLT) could allow for “embedded supervision”. It would be possible to monitor compliance automatically, simply by reading the market’s

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