Israel’s top securities regulator is recommending the creation of a cryptocurrency trading platform with enhanced regulation. A committee at the Israel Securities Authority (ISA) says the move would allow companies to engage in fundraising through the issuance of digital tokens.
According to a report by Reuters, the committee’s recommendation follows two years of studying blockchain and cryptocurrencies – and after 10 years of watching traditional trading activity in Tel Aviv decline.
As a result, ISA is looking for more ways to attract investors.
Despite the downturn in initial coin offerings (ICOs) since 2017, the committee recommends digital tokens as a viable alternative to traditional stocks, and a regulated crypto exchange that will transform the industry.
Says ISA Chair Anat Guetta,
“The excitement that defined the field in 2017 has cooled off, but the technology is here to stay.”
The committee recommends applying securities laws to cryptocurrency activities with requirements for regulated disclosures from companies issuing digital tokens.
The crypto regulations race continues. In October 2018, the UK’s Cryptoassets Taskforce published a report stating that the Bank of England does not consider crypto assets to be currency or money. In the US, the Securities and Exchange Commission has named cryptocurrency a top priority for 2019.
If the recommendations presented by the ISA are adopted, Israel could join countries such as Malta and Switzerland in creating a regulatory infrastructure for the industry.