The Hong Kong Securities and Futures Commission has reportedly joined the R3 blockchain group, according to a new report in the Wall Street Journal. The regulator is collaborating with the group’s banks and blockchain tech firms to test the technology’s capabilities for recording and settling transactions. The formal entry into the consortium is simply the latest evolution in the relationship between the regulator and R3 – a partnership that has seen the parties work together on similar tests in recent months.
The Journal report reminds readers that collaboration between regulators and industry groups is increasing in other parts of the world, while the United States lags behind other important centers of blockchain innovation. R3 managing director Charley Cooper stressed that this collaboration is vital if the industry wants to see its innovations adopted by the finance industry and others. As Cooper said,
“Both sides need to understand why this tech works and what needs to be changed to make it comply.”
According to at least one source quoted in the article, the United States may be as much as a year behind other nations when it comes to making the type of progress needed to move blockchain innovations beyond the lab. And while U.S regulators have increased their outreach and internal blockchain educational efforts, there is apparently much that still needs to be done.