The agency that oversees the Israeli stock market has taken action. We are taking steps to incorporate digital asset rules into existing legislation. The regulator has released a draft to introduce changes defining the legal status of cryptocurrencies in the country.
Amendments to Israeli securities laws to expand supervision over crypto assets
Since crypto assets are often used for investment purposes, the Israel Securities Authority (ISA ) are covered by and subject to the supervision of a regulatory framework. To achieve that, Watchdog proposes amendments to national legislation in this area.
This proposal seeks to change existing securities laws to apply to digital assets. The new regulations define them as virtual representations of value that fall under the category of financial instruments, the latter of which he is supervised by the ISA.
The logic behind this move stems from the authorities’ view that cryptocurrencies are mostly similar to traditional securities. However, while digital coins often act as financial investments, they are not covered by current legislation and due to their specifics, that definition does not always apply.
Investors One goal is to regulate the industry that handles these assets while also providing adequate protection to the public. This text covers virtual currencies offered as securities, even if they are not listed and traded on a stock exchange, and virtual currencies offered to Israelis as “foreign securities”.
Document has been published His ISA expects public feedback and comments on its proposals until mid-February. New regulations must come into force six months after approval to allow for a gradual transition.
The Watchdog initiative follows recommendations issued by the Israeli Ministry of Finance in November 2022 to update the country’s securities laws to address the various risks associated with crypto-assets. They were included in a report by the department’s chief economist, which highlighted the need for clearer regulation covering all relevant aspects.
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