Israel, a global hub for blockchain technology and incubators for the startup community. Recently revealed that the announced that the Israel Securities Authority (ISA), the country’s securities regulator, will integrate the use of blockchain technology to update and enhance its internal messaging systems security.
Israel is known to invest heavily into many emerging sectors, and is making a name for themselves in the accelerator and incubator circles. There has been a strong emphasis on building a blockchain community in the country. One of the adopters is now the ISA, whose duties include providing rules and guidelines for all financial institutions located in the country for compliance. The aim of these laws are set to ensure investor protection and create a fair market environment in the country’s financial industry. The duties also extend to prevention of insider trading, market manipulation, and securities frauds taking place within the market.
ISA will use blockchain technology in two of its major applications, an online voting system and making records of reports received from all departments of the agency. The online voting system enables investors to attend meetings remotely and securely. The other application is a program called “Magna” that will make records of reports for the agencies various sections. The decentralized and immutable nature of blockchain technology will add validation to information being transferred within the ISA.
Director of the ISA’s Information Systems Department, Natan Hershkovitz, commented:
“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 and its credibility, and one of the leaders in Israel’s public sector.”