It appears the Israeli financial regulator might join the community of the supervisors, who aim to regulate ICO industry. Moreover, some sources even suggest the possibility of the blanket ban. Israeli Regulator ISA plans ICO Regulations? If yes, what would they be?
24 November, AtoZForex – Numerous global regulators are considering the regulation of the Initial Coin Offerings (ICOs) due to the increased investors’ interest in regards to this industry.
Some of the latest countries to express interest in regulating ICOs are the Philippines, Singapore, and Anguilla. Which nation will be the first to officially regulate ICOs? This we still have to see.
Israeli Regulator ISA plans ICO Regulations?
In the meantime, as the biggest portion of the cryptocurrency demand and overall interest comes from Asia, other countries are beginning to pick up the trend as well.
Just like that, some of the online reports stated that the primary financial regulator of Israel, the Israel Security Authority (ISA) is concerned about the future of the cryptocurrency and ICO industry across the country. In fact, the sources suggest that the Israeli Regulator ISA plans ICO Regulations.
Following on this, the sources speculate on the possible regulatory norms that could be issued by the ISA. The options include a complete blanket ban on the ICOs within the county. As a matter of fact, such move would appear as a quite drastic decision, which would place Israel right next to China on the list of countries where ICOs are illegal.
Yet, the sources did not provide much clarity in regards to the matter. Meanwhile, ISA discovers ways that would preserve ICOs in the country but regulate it with a special focus on the KYC rules and other marketing limitations.
ISA ICOs classification
Additionally, another option involved ISA classifying all cryptocurrencies and ICO tokens as securities. This would prompt traders, exchanges and other market players to comply with the framework.
The sources have been claiming that this suggestion has been raised through a series of ISA meetings in the period of the last two weeks. Moreover, the sources are referring to the strict stance of the ISA chief Prof. Shmuel Hauser in regards to the ICOs and cryptocurrencies. In one of the published documents ISA has been quoted as stating:
“In some of the ICOs, we saw cases of manipulations and scams in trading that hurt innocent investors and entrepreneurs.”
Also, Mr. Hauser has been recently quoted saying that he wants to ensure that ICOs do not evolve into the new Binary Options. Yet, he denied the rumors that ISA plans to ban the ICO industry.
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