The Stellar community is gearing up to vote on several online updates that will give exchanges more control over trading derivatives within the network.

    During the voting scheduled for the end of this week, anyone who runs the Stellar site will be able to vote on a series of proposed updates, commonly known as Protocol 13. Updates will create a new authorization feature for exchanges that will allow them to improve compliance with regulatory requirements.

    “Often issuers of regulated assets want customers to be able to trade them. However, they also need to provide a high level of control over who can own them, for how long and under what conditions they can sell or buy these assets, ”says the Stellar Development Foundation blog, which developed and proposed an update to the protocol.

   After the update is activated, various platforms, for example, exchanges, will be able to establish special conditions for each crypto asset traded on the platform. Although Stellar already allows organizations to prevent the purchase of a specific asset, in the current version the system works in such a way that it cancels any existing orders that the account holder has already placed, but they have not yet been executed.

   “Protocol 13 introduces a new option that allows you to cancel a purchase permission while saving orders in a book, which simplifies the tokenization of regulated assets, such as securities,” the Stellar Development Foundation blog article says. “Thanks to detailed control, the issuer of the regulated asset may require a new type of permit ... and when the user wants to make a payment or create a new offer, the issuer can check whether the client has the right to do so in accordance with the current regulation.

   The upgrade may facilitate the management and circulation of token stocks in the United States. Exchanges based on Stellar can already block the operations of investors from sanctioned countries, such as Iran or North Korea. After activating the update, they will be able to fulfill other regulatory requirements.

   For example, the exchange will be able to prevent the investor from acquiring more than 5% of the total number of shares of the company until the investor submits the necessary request to the Securities and Exchange Commission (SEC).

  Other aspects of Protocol 13 are designed to streamline exchanges. The new “multiplex account” will allow custodial services to create sub-accounts for their customers, which will make it possible to isolate and distinguish the balances of crypto assets when they are all stored in one address.

   There will also be a new function “increasing commissions”, which will allow exchanges to quickly calculate commissions for their users and increase commissions for small payments, so that they are faster spent during periods of high blockchain workload.

    Trading and regulating token stocks is attracting more and more attention from both industry and government. In April, Securitize launched a service for trading Ethereum tokens with KYC and AML, and last month TokenSoft distributed its shares to investors for $ 4 million through the Ethereum blockchain.