Israel Securities Authority Integrates Blockchain For Cybersecurity

Blockchain, News | October 4, 2018 By:

The Israel Securities Authority (ISA) has integrated blockchain technology to improve the security of its messaging system.

The ISA announced on Wednesday that it has embedded blockchain technology in one of its systems, called “Yael,” which the regulator uses to communicate with its supervised entities. The authority said the technology will ensure the credibility of the information relayed to the supervised entities.

“The technology verifies the messages’ authenticity, prevents fraud, and prevents them from being edited or deleted,” the ISA said. “Additionally, the system prevents the option of denying that a message was received from the ISA.”

The blockchain system, developed over the last three months by IT company Taldor, is in line with authority’s vision to promote financial innovation in the capital market. The ISA is planning to implement the technology in two more systems in the future, including an online voting system developed by the ISA to enable investors to actively participate in meetings from anywhere, and a regulatory document archive called Magna.

“We are seeing a growing trend in the world in general and in the financial sector in particular of implementing innovative and groundbreaking technology,” said Natan Hershkovitz, the ISA’s Head of Information Systems. “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.”

Last month, Israel and Switzerland agreed to exchange notes on regulating blockchain technologies. In a statement, Israel’s Finance Ministry said that both sides had agreed to cooperate across on issues including market access, financial technology regulation, cryptocurrencies and combating money laundering and terrorist financing.