Israeli Regulators Issue Final Recommendations on Handling Crypto

Israeli Regulators Issue Final Recommendations on Handling Crypto

Israeli Regulators Issue Final Recommendations on Handling Crypto

Nick Evdokimov, ICOBox Founder and CEO, shares his take on the legislative developments in Israel

It has just been announced that the Israel Securities Authority (ISA) has issued a finalized report on its approach to cryptocurrency regulation.

The government of Israel established a special committee tasked with developing comprehensive regulations for the digital currency industry, and in 2017 it submitted its initial report to the ISA. The recommendations were aimed at striking a balance between facilitating the development of the crypto market and the protection of the investors’ rights. The ISA chairperson Anat Guetta commented that, although the crypto market seemed to have cooled off, she believes that the new financial technologies are “here to stay.”

According to reports, over the past ten years the number of companies and the amount of money they raised in the country has declined, prompting ISA to look for new ways to attract investors and create a more favorable legislative climate for initial public offerings (IPOs).

One of the recommendations made by the ISA in its final report is to establish disclosure requirements for crypto projects that are issuing what qualifies as securities. Such offerings should be subject to essentially the same rules as crowdfunding.

The report contains several key points on how to encourage the national crypto market. The idea is to form a sort of regulatory playground and create a set of enhanced rules for trading cryptocurrencies. To this end, the existing regulations would need to be adjusted to create a better regulatory framework for trading and minimizing the risks.

The precise timeline for implementing this new strategy has not yet been announced.

“Israel’s recognition of the promise of crypto is encouraging,” says Nick Evdokimov, ICOBox Founder and CEO. “The global crypto market has long been looking for legal clarity, and with every country issuing its own set of rules it now has a chance to stabilize and mature.”

Published at Mon, 11 Mar 2019 11:08:50 +0000