Israel’s public stock exchange has proposed a regulatory amendment that would allow some clients to trade crypto assets. The proposal, which was submitted for public consultation, comes against the backdrop of a growing number of regulatory bodies involved in the digital asset market, the exchange noted.
TASE Exchange moves to regulate cryptocurrency trading for brokers
The Tel Aviv Stock Exchange (TASE) has released a draft proposal that would allow customers of non-banking institutions (NBMs) among its members to trade cryptocurrencies. It is intended to expand the list of authorized activities for such entities to add crypto trading.
NBM provides brokerage, investment, and advisory services and acts as an intermediary. It can process a variety of transactions, including fund transfers, but is not authorized by law to accept deposits directly from customers or to act as a custodian.
Israel’s only public exchange is currently seeking feedback on its regulatory initiative. The request for feedback was posted on Monday. After receiving them, the proposal will be submitted for board approval, it said, elaborating.
This is another step in the progress and development of Israel’s capital markets, which aims to encourage innovation and competition while reducing risk and protecting customers.
In a press release, TASE marked the tumultuous events in the crypto space over the past year, highlighting the growing demand from customers and greater involvement of regulatory bodies. It argued that all of this requires regulation to mitigate various risks.
The new rules are intended to allow customers to deposit fiat money to invest in crypto assets and withdraw funds arising from such investments; NBMs will be able to act on behalf of their customers in two ways: as providers of transaction services and as providers of cryptocurrency custody services licensed companies to deal with.
Last week, the Bank of Israel issued recommendations to regulate and supervise activities related to stablecoins in the country; in November 2022, the Israeli Ministry of Finance issued its own guidelines for the regulation of digital assets. In January of this year, the Israel Securities Authority (ISA) issued a draft to define the legal status of cryptocurrencies.
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