The Australian Securities and Investments Commission has been given a green light to allow a blockchain-based insurance company to take on the role of a blockchain platform operator.
The Australian Securities & Investments Commission (ASIC) has approved the company’s application to be registered as a “Blockchain Technology company” with ASIC, which has a regulatory role in the insurance industry.
The company, which is part-owned by the Australian Banking Association, will become a blockchain company if ASIC approves its application.
The approval will be given on Monday, with a decision expected to be made within 30 days.
The application is the latest development in a battle for the future of the world’s largest insurance company, whose stock has soared more than 5 per cent in the past week as the Australian banking industry and regulators have stepped up their calls for its regulatory role to be loosened.
Blockchain is a technology that makes it possible for people to transact directly and securely without the need for a third party intermediary.
It allows for financial institutions and other organisations to transact through one central point without having to worry about the privacy of the data that is being transmitted between the parties.
It is also known as the blockchain, a decentralized data network that enables people to conduct financial transactions across a variety of digital assets.
ASIC has previously been criticised for not being sufficiently aggressive in its regulatory push for blockchain, and ASIC has been under fire from some in the financial industry over its lack of transparency.
The new application is one of several ASIC has approved for blockchain companies to operate in Australia over the past month, including the use of the blockchain to process payments for the Australian Federal Police.
The regulator has also said it is open to the idea of allowing companies to create “blockchain insurance”, which would allow people to invest directly into insurance companies without having a third-party intermediary.
The industry is looking for a number of blockchain-related startups to become blockchain companies, including an Australian-based company called BitGo.