Israel's security supervision tries to regulate crypto-assets-regulation

The authority, which supervises the securities market in Israel, takes steps to include rules for digital assets in the existing legislation. The regulatory authority published a proposal draft to introduce the changes that would define the legal status of cryptocurrencies in the country.

changes in Israeli securities laws to expand the supervision of crypto

Since crypto-assets are often used for investments, the Israeli securities authority (ISA) insisted on the fact that they have to be covered by the regulatory framework and have to be supervised under their supervision. To achieve this, the watchdog suggests changes to the country's legislation in this area.

The proposal aims to change the existing securities laws in such a way that they apply to digital assets. They define the new provisions as virtual representations that fall under the category of financial instruments, the latter being supervised by the ISA.

The logic behind the step results from the authority's view that cryptocurrencies are similar in most cases. But while digital coins often serve as an investment, they are not included in the current law and its definitions do not always apply to them due to their special features.

The provision of adequate protection for investors with simultaneous regulation of the industry, which deals with these assets, is also one of the declared goals. The texts will cover cryptos that are offered as securities, even if they are not listed and traded stock exchange as well as those that are offered to the Israelis as "foreign securities".

The document was published on Wednesday and the ISA expects public feedback and comments on its suggestions until mid -February. The new rules should come into force six months after their approval to enable a gradual transition.

The Watchdog's initiative follows the recommendations of the Israeli Ministry of Finance in November 2022 to update the country's securities laws so that they tackle various risks related to crypto assets. They came in a report by the chief economist of the department, which highlighted the need for clearer regulations that cover all relevant aspects.

Do you believe that Israel will expand its framework for securities to completely include crypto-assets? Share your expectations in the comment area below.

lubomir Taskensev

lubomir Taskensev is a journalist from the technically experienced Eastern Europe, to the Hitchen's quote: "To be a writer is what I am and not what I do." In addition to crypto, blockchain and fintech, international politics and business are two other sources of inspiration.

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