IA special committee of the Israel Securities Authority was assigned the task of studying the crypto regulations of different countries all over the world. In fact, the national regulator had been engaged in the task for the past two years. Now, after a thorough analysis of various laws, the committee has come up with a report indicating the regulations which they have found to be most suitable for the crypto sector.
The chair of the committee Anat Guetta told Reuters, “The excitement that defined the field in 2017 has cooled off, but the technology is here to stay.” The duty of the committee had been to make recommendations for creating a regulatory regime for Initial Coin Offerings while keeping in mind the incentives for the technological innovation on the one hand, and the interest of the investors on the other.
In this respect, the committee chairperson’s comment regarding the distributed ledger technology is of vital importance to the crypto community in the country.
A Dedicated Trading Platform
The final report which was published on March 6, 2019, recommended that the securities laws should be applied to the crypto assets. However, the ISA should consider unique norms for the disclosure requirements of companies looking to start ICOs. Moreover, they proposed a security sandbox framework for the ISA to gain experience in the field and effectively come up with mechanisms for regulations.
However, the most significant of the recommendations has been to create a dedicated platform for traders looking to offer digital tokens to raise money for projects. In this respect, they have cited examples of similar platforms in other places, like London.
The authority, while recognizing the need for protection of the public, stated that these recommendations are aimed to attract more innovation and investment in the sector. This decision has come amidst plummeting crypto investments in Israel, and it might turn out to be a much-needed shot in the arm for the stagnant crypto industry.