Australian Securities and Investments Commission Appoints Expert Panel to Investigate ASX's Failed Blockchain Project

According to Decrypt, the Australian Securities and Investments Commission (ASIC) has appointed a three-person expert panel to conduct a comprehensive investigation into the ASX, focusing on reviewing its governance structure and risk management system.

This investigation stems directly from the failure of the ASX's A$163 million $CHESS replacement project, a blockchain clearing system that was terminated in November 2022 after seven years of development, resulting in a pre-tax loss of A$170 million.

The investigation team, led by former Westpac executive Rob Whitfield and including several financial industry veterans, is required to submit rectification recommendations by March 31, 2026. The ASX had previously been sued by ASIC for information disclosure issues related to the project and paid a fine of $684,000.00 for violating market rules. Analysts point out that the monopoly position has led to inefficiency at the ASX, and the failure of the blockchain project has further damaged investor confidence. Currently, the ASX has completely abandoned blockchain technology and is turning to traditional system upgrades.