Israel will audit private blockchain platforms

The Israeli Securities Authority (ISA) plans to develop regulations for digital asset exchange platforms using distributed ledger technology.

According to ISA Chairman Anata Gett, the projectIt will help to offer investors a complete value chain in which digital assets are registered, traded and distributed. Therefore, the regulator turned to the business with a request to provide evidence that their blockchain-based solutions are working correctly.

Upon completion of the validation phase, the ISA intends todevelop appropriate standards that will enable the introduction of digital platforms in the Israeli capital market.

At a recent conference, Israeli representativesregulators expressed their opinion that the technology of distributed registry is able to open up new financial opportunities for participants in the asset and securities market.

Platform Audit Announcedafter the ISA special committee for six months carefully studied the features of the blockchain and its applications. The officials concluded that the technology has great potential for use in the initial public offering of shares, trading and clearing, as it allows to reduce costs and systemic risks, as well as speed up settlement processes.

While Israel plans to develop this area, the Swiss financial regulatorbelieves that blockchain contributes to money laundering.

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