Israeli Lawmakers Want To Classify Crypto As Securities Will “Destroy The Business”

Key Points:

• Proposed rules in Israel that would classify cryptocurrencies as securities will severely harm the country’s crypto market.
• The ISA wants the authority to set standards for issuers and intermediaries, impose penalties for non-compliance, and generally regulate the cryptocurrency market.
• Before issuing or registering digital assets for trading, issuers would have to publish a document akin to a prospectus under the ISA’s proposal.

According to the head of an Israeli cryptocurrency service provider, proposed rules in Israel that would classify cryptocurrencies as securities will severely harm the country’s crypto market.

Early in January, the ISA published a proposal that would grant the regulator broad new authority to oversee the Israeli cryptocurrency market.

It proposes to include “digital assets” used for financial investment in the definition of securities. The term “digital assets” was defined more precisely as a digital “representation” of value or rights utilized in financial transactions.

The ISA wants the authority to set standards for issuers and intermediaries, impose penalties for non-compliance, and generally regulate the cryptocurrency market.

Before issuing or registering digital assets for trading, issuers would have to publish a document akin to a prospectus under the ISA’s proposal.

The general public has until February 12 to offer opinions and input on the situation.

Ministry of Finance released its recommendations for laws governing the crypto

The Ministry of Finance released its recommendations for laws governing the cryptocurrency business in November of last year.

One of the suggestions permitted crypto service providers to run their businesses in Israel, at least temporarily, if they got a counterpart license from another country.

Regarding the establishment of foreign cryptocurrency exchanges in Israel, Sterk said the idea would “make some lives a little bit easier” because obtaining a license there “may take up to two, three, or four years to get.”

More than 200,000 Israelis are believed to have invested in cryptocurrencies, according to the ISA’s most recent estimates from January. The local crypto industry is thought to be home to some 150 enterprises.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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