The Australian financial sector has been heavily influenced by blockchain technology in terms of database construction and better transparency.
But rumor has it that several Australian exchanges using blockchain technology to their advantage have an unfair upper hand over those who don’t.
This became apparent when representatives from Chi-X requested the Australian Competition and Consumer Commission to investigate the effect of blockchain tech on the trading activities happening within the country.
According to Chi-X’s claims, a rival stock exchange in Australia, called Australian Securities Exchange (ASX) has replaced its CHESS (Clearing House Electronic Subregister System) with a new blockchain platform that could potentially give it an unfair advantage over every other exchange located within Australia.
The blockchain system allows for faster processing and registration of new users with almost full compliance with local regulations, thus allowing ASX to reach trading volumes not reachable by rival companies.
A representative of Chi-X has commented that the clearing processes are already hard as they are with the ASX and the blockchain system will make it much worse. It’s not yet confirmed if this is true, but the evidence provided should be enough to at least regulate such implementations in the future.
This is quite a dodgy subject considering that Chi-X is the biggest rival of ASX, as well as its loyal customer for clearing services.
The adoption of the blockchain in Australia
The financial industry is not the first sector that was heavily influenced by blockchain technology. Most of the largest industries such as manufacturing, mining, and farming are also considered to be subject to blockchain upgrades in the new future.
However, the biggest change so far has to be for the Australian gaming industry. Almost every online platform, where there are dozens of in Australia has adopted some kind of Bitcoin depositing methods and thus connected their platforms to Distributed Ledgers. The most prominent companies are those featuring Evolution Gaming software, for which the provider is 100% adapted to. Therefore, Australian Evolution Gaming casino online players access on a daily basis is considered at the top of the industry in terms of competitive prowess, thus forcing other companies to adopt the same technology.
It is likely that Chi-X is referring to this phenomenon that forced a whole industry to change their ways simply because one of them implemented the innovation and got ahead too much. Considering that Australia is a free market where companies are free to upgrade their services as long as they do not violate regulations, it’s unlikely for the ACCC to qualify ASX’s decision as something that violates the “antitrust law”.
As for other industries in Australia, they pretty much have the green light for adopting the blockchain technology as long as it adds more transparency and user accessibility, so why should the financial sector be an exception in this case?