ESMA calls for information on blockchain technology

A call has been issued by the European Union's securities watchdog, European Securities and Markets Authority (ESMA), for evidence to find out if and when blockchain technology can "enter the financial mainstream".

The regulator, which supervises securities markets in the common currency block, has spent six months watching investment in the bitcoin space. It is now seeking feedback from industry stakeholders on how the underlying technology of digital currencies can be used to "issue, buy and sell and record ownership of securities".

"ESMA is interested in how different virtual currencies and the associated blockchain, or distributed ledger, can be used in investments. There are now facilities available to use the blockchain infrastructure as a means of issuing, transacting in and transferring ownership of securities in a way that bypasses the traditional infrastructure", the ESMA said in a statement.

Bank to the Future CEO Simon Dixon, who is closely involved in the UK's crypto-crowdfunding sector, told CoinDesk he was delighted that the ESMA has started to acknowledge that blockchains have use beyond currency.

"No doubt ESMA's call for information will be about introducing tighter regulations into blockchain financial markets, but perhaps it will result in more transparent and fair financial markets being developed to stimulate innovation", Dixon said. "Anything that improves access to finance for startups is a good thing," he added.