The body overseeing the securities market in Israel is taking steps to incorporate rules for digital assets into the existing legislation. The regulator released a draft proposal to introduce the changes that would define the legal status of cryptocurrencies in the country.
Amendments to Israel’s Securities Laws Aimed at Expanding Supervision Over Crypto
Arguing that as crypto assets are frequently used for investment, the Israel Securities Authority( ISA) has claimed they need to be covered by the nonsupervisory frame and placed under its oversight. To achieve that, the watchdog is suggesting emendations to the country’s legislation in the field.
The offer seeks to change the existing securities laws so that they apply to digital assets. The new provisions define them as virtual representations of value that fall under the order of fiscal instruments, the ultimate being overseen by the ISA. The sense behind the move stems from the authority’s view that in utmost cases cryptocurrencies are analogous to traditional securities. But while digital coins frequently serve as fiscal investments, they aren't featured in the current law and its definitions don’t always apply to them due to their specifics.
Providing acceptable protection for investors while regulating the industry that deals with these assets is also among the stated pretensions. The textbooks will cover cryptos offered as securities even if they aren't listed and traded on the stock exchange, as well as those offered to Israelis as ‘ foreign securities. ’
The document was published on Wednesday and the ISA expects public feedback and comments on its proffers untilmid-February. The new rules should enter into force six months after their approval to allow for gradational transition.
The watchdog’s initiative follows recommendations issued by Israel’s Ministry of Finance in November, 2022 to update the nation’s securities laws so that they tackle colorful risks associated with crypto assets. They came in a report by the department’s principal economist who highlighted the need for clearer regulations that cover all applicable aspects.
(Lubomir Tassev, Bitcoin.com, 2023)