Israel could include crypto in existing state laws

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The Israel Securities Authority (ISA) could change three of its existing currency laws to squeeze cryptocurrencies.

The suggestions of the regulatory authority aim to grant investors maximum security when dealing with digital assets, and are reminiscent of the recent collapse of FTX and the severe losses that he has added to consumers.

Pay attention to crypto

Israel's financial supervisory authority suggested that cryptocurrencies should be included in the country's existing securities legislation. Therefore, the regulatory authority will directly monitor the company with Bitcoin and old coins. The investment class will also be classified in the "Financial Instruments" category, in which there are also securities, marketing and joint systems.

The possible change aims to offer the Israeli crypto participants additional protection and to underline the technological progress of the sector.

"Cryptocurrencies are a digital representation of values ​​that are used for the purpose of the financial system and can be transmitted and stored electronically using the distributed Ledger technology or another technology," said the ISA.

The regulatory authority believes that the introduction of the crypto industry could have a positive impact on the Israeli economy, since it could trigger the flow of diverse capital.

"The progressive technology in these systems can lead to economic efficiency in many areas, reduce costs, save the need for intermediaries and optimize the way information is transferred between companies," the proposal says.

The ISA added that cryptocurrencies have become a widespread niche in the Mediterranean, with more than 200,000 Israelis that are exposed to the market and about 150 companies are active in this area.

The proposal can be commented publicly by February 12th and could come into force after six months.

Memory of FTX and Celsius

The ISA is of the opinion that the global supervisory authorities missed it last year to impose relevant rules on the crypto industry, which led to the decline of many companies such as FTX and Celsius Network. It was also pointed out that the founder of the latter is Alex Mashinsky, who is of Israeli origin.

Celsius in June last year exposed to the swaps and transfers between accounts, citing "extreme market conditions". The company hoped for a liquidity stabilization.

On the contrary, the problems for the former crypto giant continued, and he also had to reject in July. It stored for insolvency protection according to chapter 11 a week later, while ceo mashhinsky from his post in September. The company is about to conclude a takeover contract with FTX, but the downfall of the latter destroyed these plans.

Celsius recently extended the deadline for customers to submit their claims up to (at least) January 10th. It is considered one of the leading companies in the crypto loan area and had 1.7 million customers in the early summer. The creditors include Bankrotte Alameda Research and the Pharos USD Fund Sp.

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