More Israelis get exposed to digital assets, and the Israel Securities Authority (ISA), the country’s central securities regulator, proposed regulating them. The plan sought to strike a compromise between the necessity for regulation and the dangers involved in investing in digital assets.
Over the last few years, the ISA formed several committees to evaluate and control the issuing of cryptocurrencies. They also supported the growth of the Israeli digital economy. The most recent committee was entrusted with looking into the authority’s investment product regulations.
This idea will have an impact on 150 businesses that are already active in the nation’s cryptocurrency market. The modification of the definition of securities includes the inclusion of assets used for financial investment.
In addition, it describes digital assets as a form of worth or rights employed in financial investments. The Israel Securities Authority seeks to regulate the digital assets market, set standards for intermediaries and issuances, and enforce penalties for noncompliance.
This change includes the need that takes place before a digital asset is issued or made tradeable. Its issuers must publish a document explaining its specifics.
This protects investors by requiring digital asset industry intermediaries to follow the rules similar to traditional securities industry intermediaries, including licensing and capital adequacy requirements.
Related Reading | A Year Of Setbacks For Bitcoin And Ethereum In 2022
ISA intervention in cases of suspected misbehavior is intended to reduce risks of fraud and manipulation in digital assets. It is open for public comment until February 12 and will take effect after a six-month waiting period.