The Israel Securities Authorities (ISA) has introduced a legal framework to regulate cryptocurrencies under its purview, protecting investors while benefiting from the advantages of the asset class. The ISA wants to amend the current laws to accommodate digital assets.
In particular, the authority plans to bring cryptos under the existing securities laws, treating them as financial investments. Further, ISA is seeking to amend the current policies since the laws are difficult to implement in their current state. The authority also aims to have a flexible approach to regulations to accommodate changes in the technology underlying digital assets.
ISA Is Keen On the Regulatory Milestones In Other Countries
In an interview shared with Coindesk, Anat Guetta, the chairperson of ISA, said she was borrowing a leaf from the approach taken by her US counterparts. ‘‘We have to wake up and understand that there is no real difference between crypto and securities, and we have to unify the definition to protect consumers and investors and to make this industry legitimate,’’ she said.
The new stance by the Israeli government comes in the wake of high-profile meltdowns in the sector, including the collapse of Celsius, which ISA noted had extensive operations in the Middle Eastern country. ISA has opened the proposal to the public for comments until February 12, and there will be six months before the law is affected.
In November, Israel’s ministry of finance, through its chief economist, posted a report suggesting, among other things, the removal of barriers in the digital asset space and the expansion of the existing legal frameworks. The report – done in consultation with the EU MiCA legislation – also aims to have a tax payment mechanism.
