Israel’s Financial Authorities To Establish New Crypto Legislation

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Key Highlights:

  • Three current financial laws were proposed for change by the Israel Securities Authority to encompass digital assets.
  • The new crypto legislation will be implemented six months after being approved and publicized.

The Israel Securities Authority (ISA) could change three of the current financial rules to include cryptocurrency.

According to the agency, the ideas are meant to shield investors against hazards, which have been prevalent during the past year. The paper mentioned the collapse of the cryptocurrency exchange FTX while pointing out that Israeli ownership of the defunct cryptocurrency lender Celsius, which caused a decline in the cryptocurrency market last summer, was mentioned.

The proposed revisions also aim to preserve the ability to modify the law to accommodate the industry’s rapid technological advancement.

Importance of the authority

Over the past few years, the authority has created a number of committees to evaluate and control the issuing of cryptocurrencies and foster the growth of digital markets in Israel.

The most recent committee was entrusted with looking into the authority’s stance on digital asset investment products.

The authority also requests the ability to regulate the digital assets market, including setting standards for issuers and third-party people and imposing penalties for non-compliance.

The head of the Israel Securities Authority, Anat Guetta, has stated that she sees cryptocurrency and securities as comparable and that it is essential to harmonize their definitions to safeguard consumers and investors and legitimize the sector. This week’s proposal from the ISA also mentioned how notable failures like the demise of Celsius, which had a substantial presence in Israel, had impacted the industry.

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