What Regulatory Challenges Exist for Using Private Blockchains in Cross-Border Derivatives?

Regulatory challenges include determining the governing jurisdiction when nodes are geographically dispersed. There are also issues around data privacy, specifically adhering to different global data protection laws like GDPR, as the ledger is shared.

Furthermore, achieving regulatory harmonization for settlement finality across various legal systems is complex. Finally, anti-money laundering (AML) and know-your-customer (KYC) requirements must be integrated into the permissioned access.