According to the local reports, the financial markets regulator ISA considers new ICO market regulations in Israel. Which approach will ISA adopt? When can we expect the new regulations to come into force?
13 March, AtoZForex – The Chairwoman of the primary Israel financial markets regulator, the Israel Securities Authority (ISA), Anat Guetta, has informed the public about the new regulatory approach in regards to the cryptocurrency market in Israel.
Regulator ISA considers New ICO Market Regulations in Israel
According to the local media reports, the process will involve a sandbox which will be used by startups to test their products. The regulator has stated that, presently, it is “…examining the establishment of a regulatory environment that makes it easier for companies that use new technology to supply financial products and services. It is possible that this may also be relevant to companies that issue distributed cryptographic coins.”
In order to further explore the matter, the ISA established a committee of lawyers and consultations. As a result, three potential approaches were considered.
- The first includes a system that is currently utilized in the US, where the cryptocurrencies are classified as securities on the case by case basis.
- The second approach is based on the specific legislation for cryptocurrency irrespective of whether it can be regarded as security. The same approach is adopted by the Swiss watchdog (FINMA). The regulator defines three categories for tokens – payment, utility, and asset.
- The last model is involving the mass financing approach. It enables firms to raise the capital from the public.
A softer stance of Israel?
It appears that the ISA has favored the first model. The officials have stated that the interim report will be available to the public soon. This decision was supposed to be published in the very beginning of 2018. However, due to the change of the ISA management, the process got delayed.
In fact, the former Chief of ISA, Shmuel Hauser has been holding a relatively negative stance in regards to the cryptocurrency market. The newly announced initiative might appear as a signal that the agency is softening its position in regards to the new innovation in the country.
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