The Israel Securities Authority (ISA) has published its final report on cryptocurrency regulations, local financial newspaper Globes reports Thursday, March 7.
A special committee formed in 2017 to develop proper regulations for cryptocurrencies has presented its report to ISA chairperson Anat Guetta. Commenting on the recommendations, Guetta said that they were designed both to develop the crypto sector and protect the rights of investors. She further added that the technology is “here to stay” despite the fact that excitement in the industry has cooled.
The ISA recommends imposing disclosure requirements for crypto offerings that qualify as securities and states that such offerings should be controlled in a similar manner to crowdfunding.
The final ISA report puts forth several main ideas for how to support the crypto industry in the country including the establishment of regulatory sandbox and the creation of a special platform to trade cryptocurrencies under enhanced regulation. The ISA is quoted by Globes:
“The committee recommends considering adjustment of the existing regulation to create more suitable regulatory infrastructure for this trading activity in order to better cope with the risks incurred in this activity.”
According to Reuters, the number of companies and the amount of money raised in Tel Aviv has fallen over the past decade, which is why the ISA is seeking to attract new investors and boost initial public offerings (IPOs).
The exact time frame for the implementation of these guidelines has not yet been set.
Israel considered launching its own digital currency in 2017. However, in November 2018, a study group exploring the possibility of an “e-shekel” said that the country’s central bank should not issue its own digital currency.
In late 2018, a team that included representatives from the Bank of Israel issued a formal request for information about distributed ledger technology (DLT). According to the paper, the group believed that DLT could help renew and strengthen cooperation and coordination between regulators and the public.