ASIC appoints panel to investigate ASX's failed blockchain project

Odaily News The Australian Securities and Investments Commission (ASIC) has appointed a three-person expert panel to conduct a comprehensive investigation of the Australian Stock Exchange (ASX), focusing on its governance structure and risk management system. The investigation stems directly from the failure of ASX's $163 million blockchain clearing system CHESS replacement project, which was terminated in November 2022 after seven years of development, resulting in a pre-tax loss of $170 million. The investigation team is led by former Westpac executive Rob Whitfield and includes many senior financial industry figures. It is required to submit rectification proposals before March 31, 2026. ASX has previously been sued by ASIC for information disclosure issues in the project and paid a fine of $684,000 for violating market rules. Analysts point out that the monopoly position has led to the inefficiency of ASX, and the failure of the blockchain project has further damaged investor trust. At present, ASX has completely abandoned blockchain technology and turned to traditional system upgrades. (Decrypt)