Israel’s securities regulator, the “Israeli Securities Authority,” or ISA for short, is reportedly proposing a framework for regulating digital assets.
Changes made to proposal
In recent years, the authority has established multiple committees to investigate and regulate the issuance of cryptocurrencies and also to promote the development of digital markets in Israel.
The proposal outlines a goal to achieve the “double value” by responding to the risks associated with investing in digital assets, in addition to giving it the power to adopt a regulation if necessary.
It also changes the definition of ‘securities’ to include digital assets used for financial investments. It was further added that the definition of ‘digital asset’ is a digital representation of value or entitlements used for financial investments.
The authority is also seeking powers to oversee the digital asset industry, including setting requirements for issuers and intermediaries and imposing sanctions for non-compliance. Reportedly, there is until February 12 to respond to the proposal.
Promoting Digital Assets Industry
The regulator in Israel has the ultimate goal of facilitating the development of the digital asset industry in Israel. This by enabling the creation of digital asset exchanges and enabling the use of digital assets as collateral.
However, some risks must be limited for this, so that investors are always protected. It will therefore also be necessary to apply for a permit in Israel to be able to operate legally in the country.
Reportedly, Israel’s chief economist named ‘Shira Greenberg’ has prepared a list of recommendations for the country’s policymakers. These recommendations are about how to address digital asset legislation and drive cryptocurrency adoption.
