Regulatory agencies investigate the Australian exchange.

Gate News bot reported by Coindoo that the Australian securities regulator has launched a formal investigation into the Australian Securities Exchange (ASX), focusing on its abandoned Blockchain project and broader operational risks.

The Australian Securities and Investments Commission (ASIC) announced on June 16 that it has launched an investigation due to ongoing concerns about the ASX’s ability to maintain a safe and stable financial infrastructure, similar to those of the Reserve Bank of Australia.

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 Australia’s major securities exchange.

The Australian Securities Exchange (ASX) intensified its review process after canceling the highly anticipated CHESS settlement system Blockchain upgrade plan in 2022. This move led to project delays, financial losses, and widespread criticism. The Australian Securities and Investments Commission subsequently filed a lawsuit, accusing ASX of making misleading statements regarding the progress and feasibility of the project.

The investigation by the Australian Securities and Investments Commission marks a push for accountability in the broader field of the Australian securities exchange, particularly regarding core market infrastructure. The findings of the investigation could reshape the way the Australian Stock Exchange innovates in the future and how much regulation it will face.