Regulator Investigates Australian Securities Exchange
Australia’s securities watchdog has launched a formal investigation into the Australian Securities Exchange (ASX), with a focus on its abandoned blockchain project and broader operational risks.
The Australian Securities and Investments Commission (ASIC) announced the probe on June 16, citing ongoing concerns shared with the Reserve Bank of Australia about the ASX’s ability to maintain secure and stable financial infrastructure.
Three of Australia’s most experienced financial experts have been appointed to lead the review. Their task is to examine the governance, risk controls, and system resilience of the country’s main equities exchange.
The scrutiny intensified after the ASX scrapped its much-anticipated blockchain upgrade to the CHESS settlement system in 2022. That move triggered delays, financial losses, and widespread criticism. ASIC later filed legal action, accusing ASX of misleading statements regarding the project’s progress and viability.
The failed blockchain overhaul was meant to modernize the exchange’s aging infrastructure. Instead, it has become a flashpoint for debate over how financial institutions handle large-scale technology shifts.
ASIC’s inquiry signals a broader push for accountability, especially when it comes to core market infrastructure. The outcome of the investigation could reshape how the ASX approaches future innovation—and how much oversight it faces moving forward.
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