This Wednesday, the Advisory Committee, created by the Israeli Securities Administration (ISA) at the end of 2017, presented a final report on the regulation of cryptocurrencies.
“The world of cryptoactive assets proved to us last year that a careful and continuous study of [this] dynamic and innovative area [can] allow us to make decisions that balance the need to encourage innovation and the obligation to protect [retail investors], ” said ISA Chairman Anat Getta .
The excitement that characterized the market in 2017 subsided, but the technology remained to develop further. ”
According to a statement issued by the regulator, a special committee that studied the digital assets industry concluded that cryptocurrencies should be regulated in accordance with Israeli securities laws.
This means that cryptocurrency companies will be required to fulfill a variety of information requirements. For example, they will have to indicate any conflicts of interest and disclose all commissions that customers pay.
What is even more alarming for many brokers living in Israel, the country's securities laws also impose restrictions on the firm’s trading opportunities. However, it is not clear whether these rules will apply to crypto companies.
Along with the strict regulatory measures recommended by the committee, the ISA statement also states that we can talk about the creation of a specialized cryptocurrency exchange .
“The Committee recommends, ” says an ISA statement to the press, “to consider creating infrastructure [that would allow] creating a platform for trading cryptoactive assets.”
With regard to the release of the cryptocurrency themselves, the ISA committee believes that digital assets should be treated as crowdfunding. ISA already has a number of laws, starting in 2015, that regulate crowdfunding.
These laws impose certain restrictions on the amount of investment of retail investors, with more stringent restrictions on professional and institutional investors. In essence, the system works as an accredited investment in America — something that many crypto companies have already used in the United States.
Publication date 07.03.2019
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