Israel’s securities regulator employs blockchain in messaging platform
Israeli financial regulator the Israel Securities Authority (ISA) said on Wednesday it was using blockchain technology in its cybersecurity systems to help protect its messaging platform.
Blockchain’s distributed ledger technology has been embedded into the ISA’s “Yael” system, used by the government agency to deliver messages and information to companies and organisations that fall under its regulatory oversight.
Further applications to come
The regulator said in a statement that the technology would also soon be integrated into its “Hatzba-Hon” voting system, developed to allow investors to actively participate in corporate investor meetings from any place all over the world.
A further development is planned for the technology to be implemented into its “Magna” system, used to publish all of the ISA’s electronic reports filed by its supervised entities.
In its Yael system, the technology confirms the authenticity of messages and prevents them from being fabricated, edited or erased. It also prevents the possibility of denying that messages were received from the ISA, the regulator said.
“Blockchain technology in the Yael system adds an additional layer to the security of information conveyed by the ISA to the supervised entities,” the ISA said.
The regulator said the installation of the application took three months and was carried out by Taldor Corp, one of Israel’s leading IT companies.
Natan Hershcovitz, director of information systems at the ISA, said: “We are witnessing a growing trend toward incorporating of innovative and pathbreaking technologies in the financial industry and in general.
“The implementation of blockchain technology in the ISA’s information systems positions it as one of the leading government authorities worldwide in the security and reliability of information conveyed to the public.”