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The Israel Securities Authority [ISA], Israel’s chief securities regulator tasked with maintaining the transparency of the country’s capital market, reignited the hopes of the country’s virtual currency industry.
According to Reuters, the regulator on March 6 recommended the creation of a marketplace that would allow individual users to trade in cryptos and also allow companies to raise funds using digital tokens.
The ISA was studying the cryptocurrency world for the past two years. However, the body confirmed that its suggestion is merely a recommendation, and not an actual implementable policy. Despite the crypto-market being bearish, regulatory bodies have responded to the growing need for structure within the industry.
Anat Guetta, the Chair of the ISA said,
“The excitement that defined the field in 2017 has cooled off, but the technology is here to stay.”
Several opponents of cryptocurrency and its regulation have previously shared the same opinion, lambasting the decentralized currency and praising its underlying technology, blockchain. Warren Buffet, CEO of Berkshire Hathaway and Jamie Dimon, the CEO of JP Morgan are top-finance moguls that have voiced this one-not-the-other opinion in the past.
This attempt by the ISA to include cryptocurrencies within its offerings, is a move to bring in more companies into the country. Tel-Aviv, the country’s finance and technology capital saw a number of companies’ trading volume and the money fall, compared to a decade ago and hence wants to bring in growing cryptocurrency crowds.
Bringing in the cryptocurrency community will not only add yet another financial asset to the capital market’s repertoire, but will increase the standard of the industry’s technology. Guetta added that the influx of new technology will streamline and increase competition in the capital market, but the key will be to find the right balance and to protect the investors.
In addition to introducing the cryptocurrency platform, the ISA also recommends applying securities law to regulate virtual currencies and securities tokens. However, Reuters reported that the law will be altered to include a “unique” disclosure for companies that will issue tokens.
The ISA did not confirm when a final decision will be taken, nor have they mentioned a timeline for the same. Additionally, the report also mentioned other exchanges in London and Australia that are considering introducing such platforms.