Israel’s Financial Regulator Using Blockchain for Cybersecurity
7-10-2018, 04:30 142
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Blockchain Implementation by a Regulator
Israel Securities Authority (ISA), the financial securities regulator of the country has started to use blockchain technology to improve the security of its online messaging systems according to a news report published earlier on Wednesday by timesofisrael.com, an online media platform.
The government agency is responsible for preventing and curtailing securities frauds, insiders trading, unethical practices and safeguarding the investors’ interests. As per the report, the technology has been embedded in one of the messaging systems “Yael” used by the government body to communicate with the entities under its purview.
The authority intends to use the technology within two more applications – an online voting system which enables investors to participate in meetings remotely, and in software called “Magna” which is used to record all the reports from the entities under the ISA’s supervision.
Use-Case for Enhanced Cybersecurity
The technology which is used to facilitate quick peer-to-peer transactions using encryption will be used to secure confidential messages. The ISA said the solution “adds another layer to ensuring the credibility of the information relayed to the supervised bodies. The technology verifies the messages’ authenticity, prevents fraud, and prevents them from being edited or deleted. Additionally, the system prevents the option of denying that a message was received from the ISA.”
“The embedding of the technology in the ISA’s information systems is in line with its vision to promote financial innovation in the capital market,” it added.
Natan Hershkovitz, director of the ISA’s Information Systems Department, said that “we are witnessing a growing trend around the world, and in the financial field in particular, to embed innovative and revolutionary technologies. 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.”
Crypto Friendly Government
As reported earlier in February this year, the ministry of finance and the Bank of Israel are working together on a state-sponsored cryptocurrency. Israel is also looking to put in place regulations surrounding digital assets.
The earlier plan of the Knesset (The Finance Committee of Israel’s parliament), to put in place the regulations effective May 1st was postponed by four months. In September Switzerland offered to share its experience with the middle-eastern nation.
Israel is known for its expertise when it comes to cybersecurity. Using the blockchain technology for securing its internal systems is an obvious progression for the tech-savvy nation to safeguard its systems from cyber threats.
Do you think Israel will emerge as a blockchain friendly country like Japan and Switzerland? Let us know in the comments below.
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