Israeli regulator to Ban Cryptocurrency firms from Stock Exchange


The rising interest in cryptocurrencies has caused some concerns among Israeli officials. Thus, in its latest attempt to protect investors from the investment risks, Israeli regulator to ban cryptocurrency firms from the stock exchange.

27 December, AtoZForex Israeli Securities Authority (ISA), the primary financial regulator in Israel, has cautioned investors about Bitcoin “bubble”. The supervisor states that the existing regulations will not be able to protect investors.

Israeli regulator to Ban Cryptocurrency firms from Stock Exchange

The ISA reportedly can move to ban the firms whose market value is based on the cryptocurrency from trading on the Tel Aviv Stock Exchange. According to the Chairman of ISA, the current regulations have left the investors’ community “unprotected” from the risk of investing in Bitcoin and other cryptocurrencies. He has added:

“I think the price of bitcoin is a bubble. No one knows what’s behind it.”

In fact, the nature of Bitcoin is quite volatile. Just this past Friday, the prices of Bitcoin have slid 30% from the all-time high of almost $19,000 it has reached earlier in the week.

In addition, Mr. Hauser has stated that he would set the beginning to the rulemaking process to remove cryptocurrency-focused entities from the stock market. He said he also would initiate a ban on the new such firms from listing until the officials find “a proper regulatory framework.”

How ISA Cryptocurrency stance affects Israeli business?

Mr. Hauser has appointed a committee that is in the process of sketching recommendations in regards to the regulations of securities that are tied to cryptocurrencies.

Earlier this month, some of the Tel Aviv-listed entities have experienced a spike in their stock prices. The surge in prices has followed the announcement of the plans to enter the cryptospace. For instance, the company Natural Resources Holding Ltd. Informed the public it would enter the Bitcoin mining business only to see its market value increasing by 4,000% in some weeks.

Thus, considering the building interest, the Israeli regulator has decided to act on investors’ side to safeguard them from cryptocurrency risks. This month, the ISA has already decided that stocks that are tied to cryptocurrencies would not get included in Tel Aviv Stock Exchange indices. Following this decision, the share price of Natural Resource Holdings has dropped significantly.

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