The Israel Securities Authority is Now Using Blockchain Technology to Communicate With Israeli Companies
The Israel Securities Authority is now using blockchain technology in its external communication system, according to an official announcement from earlier today. The country’s national securities regulator is using blockchain to boost efficiency and security within multiple aspects of its organization.
The ISA has integrated blockchain in two stages. As reported by The Times of Israel, the first stage of implementation was with an existing system called Yael. The ISA uses Yael to communicate with its supervised entities. Now, all communication across Yael is facilitated with blockchain technology.
In other words, Israel’s official national securities regulator is using blockchain technology to securely communicate with companies and organizations under its supervision.
Thanks to blockchain, the organization can communicate with supervised entities while enjoying improved security. Blockchain is used to confirm the origin of messages and to verify the authenticity of those sending and receiving messages. An additional benefit of blockchain is that nobody can deny that they received a message. An organization can not deny that they received a warning letter from the Israel Securities Authority, for example, because anyone can confirm receipt of that letter using the blockchain.
Blockchain is expected to prevent forgery and deletion within the communication system as well.
The Second Stage of the ISA’s Blockchain Rollout Will Begin Shortly
The second stage of the Israel Securities Authority’s blockchain technology rollout has not yet been completed.
The second stage will involve integrating blockchain with the organization’s “Etsba-on” voting system, which allows investors to participate in meetings regardless of their geographic location. Investors can securely vote on topics without necessarily being present for the meeting. Blockchain will be used to verify voters and secure the voting process.
The Israel Securities Authority has also announced plans to roll out blockchain to a third part of the organization: in the future, the ISA wants to implement blockchain into its monitoring system.
In today’s blockchain announcement, the ISA praised the work of IT company Taldor, which helped integrate blockchain into the organization. Blockchain development and integration took place over a three month period.
“We are seeing a growing trend in the world in general and in the financial sector in particular of implementing innovative and groundbreaking technology,” explains Natan Hershkovitz, Head of Information Systems at the ISA in a statement announcing the organization’s new blockchain-based system.
“The application of blockchain technology into the information systems of the ISA makes it one of the world’s leading authorities in terms of the security and reliability of information that it passes to the public.”
The ISA Proposed Banning Cryptocurrency Firms Just A Few Months Ago
As pointed out by Finance Magnates, the ISA has had a rocky history with crypto and blockchain.
In January 2018, the ISA proposed the temporary expulsion of all cryptocurrency firms from Israel’s national stock exchange, for example.
Later that month, however, the ISA went through a leadership change. Many believe that the ISA’s shifting stance towards crypto and blockchain regulation can be attributed at least partially to that leadership change.
Soon after the ISA leadership change, for example, the new head of the organization proposed creating a national sandbox for approving initial coin offerings. Later in the year, the organization also published conclusions regarding the legal definition of cryptocurrency. The ISA defined tokens as securities while stating that ordinary cryptocurrency coins are not securities.
The Israel Securities Authority is one of the largest regulatory organizations in the world to implement blockchain technology into its systems. We look forward to hearing more about the ISA’s blockchain technology implementation in the future.