Israeli Regulator ISA plans to use Blockchain technology in order to improve the quality of its communication system. The authority aims to be able to verify the authenticity and the origin of messages by using this unique technology.
4 October 2018 – The primary financial regulator of Israel, the Israel Securities Authority (ISA), has reportedly launched a Blockchain-based messaging system in order to improve security levels.
Israeli Regulator ISA to Use Blockchain
Some of the local news outlets report that the ISA announced this Wednesday, 3 October, that the technology had been rolled out initially across its platform dubbed “Yael.” The agency uses this platform to communicate with entities under its jurisdiction.
The local media reports that the Blockchain integration has been introduced in the recent months by Taldor, one of the Israelis cybersecurity firms. The authority aims to be able to verify the authenticity and the origin of messages by using this unique technology. In addition, the ISA plans to prevent fraudulent operations by ensuring that communications cannot be tampered with.
The ISA is quoted as saying that the Blockchain integration provides an extra layer of security “ensuring the credibility of the information relayed to the supervised bodies.” In addition, the regulatory body stated that it intends to integrate Blockchain in two other systems. These include an online shareholder voting platform that was designed by the ISA and a regulatory document archive dubbed Magna.
ISA Cryptocurrency Stance
According to the director of the agency’s Information Systems Department, Natan Hershkovitz:
“Implementing blockchain technology in the ISA’s information systems makes it one of the global leading authorities in securing the information provided to the public.”
The watchdog has expressed interest in Blockchain’s benefits, yet, it has been quite cautious when it comes to cryptocurrency market.
Earlier this March, the ISA banned entities that hold, invest or mine cryptocurrencies from being able to list on the Tel Aviv Stock Exchange. Referring to the high volatility of the digital assets as the reasoning for its decision, the agency said that it aims to protect passive investors with the move.
In December 2017, AtoZ Markets reported that the ISA reportedly plans to ban firms whose market value is based on the cryptocurrency from trading on the Tel Aviv Stock Exchange. According to the Chairman of ISA, the current regulations have left the investors’ community “unprotected” from the risk of investing in Bitcoin and other cryptocurrencies. He has added:
“I think the price of bitcoin is a bubble. No one knows what’s behind it.”
In addition, Mr. Hauser has stated that he would set the beginning to the rulemaking process to remove cryptocurrency-focused entities from the stock market. He said he also would initiate a ban on the new such firms from listing until the officials find “a proper regulatory framework.”
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