The Israel Securities Authority recommended modifications to three current financial statutes to include digital assets.
Israel’s financial regulator submitted proposed revisions to extend the definition of securities and include digital assets in current financial regulations.
The suggestions aim to safeguard investors from risks, which the agency warns have increased over the last year. The letter refers to the bankruptcy of the cryptocurrency exchange FTX and said that the failed cryptocurrency lender Celsius, which precipitated a crypto market decline last summer, is controlled by Israelis.
The proposed modifications also attempt to preserve the flexibility to adapt legislation to the crypto industry’s rapid technical growth.
The Israel Securities Authority recommended incorporating digital assets into legislation regulating securities, joint investments and investment consultation, marketing, portfolio management, and investment consultation. In each instance, digital assets are described as “digital representations of value utilized for financial investment that may be electronically transferred and maintained using distributed ledger technology or another technology.”
The public feedback period on the proposed revisions ends on February 12. The ISA advises six months from the date of publication to the date of enactment for companies and regulators to prepare for supervision.
The regulator views cryptocurrencies as an opportunity for investors and the Israeli economy since they permit more varied funding sources and encourage innovation and development.
The statement states, “The sophisticated technology in these assets may lead to economic efficiency in many sectors, cut expenses, eliminate the need for middlemen, and optimize the movement of information between organizations.” According to the ISA, more than 200,000 Israelis invest in cryptocurrencies, and around one hundred fifty crypto businesses operate in the nation.
In recent months, Israeli authorities have shown increased interest in cryptocurrencies, with the national stock market seeking to develop a trading platform for digital assets.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.