- ASIC forms a panel to address ASX blockchain setback.
- Focus on governance, risk, and management evaluations.
- ASX to engage constructively with investigation.
The Australian Securities and Investments Commission (ASIC) has appointed a three-member panel to investigate the Australian Securities Exchange’s (ASX) failed blockchain project, initially intended to replace the CHESS settlement system.
The investigation highlights the importance of scrutinizing governance and oversight frameworks following the costly failure of the ASX’s blockchain initiative.
The failed ASX blockchain project aimed to replace its CHESS clearing system but ended in a loss of approximately $163 to $164 million. The ASIC-appointed panel will examine the project’s management. An ASX Spokesperson said, “We welcome the regulator’s announcement and vow to engage constructively with the panel members throughout the investigation.”
The panel led by Rob Whitfield with members Christine Holman and Guy Debelle will focus on ASX’s governance and risk management. The panel’s findings will provide insights for ASX’s future operational reforms.
Immediate effects on the financial market include the ASX’s announced broader loss of $250 million. Meanwhile, core cryptocurrency assets remain unaffected on-chain, as the project targeted traditional market systems.
Financially, the probe represents a sunk investment loss, prompting regulatory scrutiny. Politically, it emphasizes intensified oversight in institutional blockchain use. Business implications revolve around improving market infrastructure.
The ASX’s blockchain failure underscores the need for thorough regulatory evaluations of future projects. Lessons from this incident may guide institutional blockchain strategies, minimizing financial losses while advancing market technologies effectively.
