Israel Securities Authority Chairman has recently laid out regulatory concerns regarding Initial Coin Offerings (ICOs) and Cryptocurrencies. Professor Hauser, the ISA chairman, started his address by seeking differentiation between blockchain and cryptocurrency.
Speaking about Blockchain, the Professor stated that: “Blockchain technology is going nowhere and it is here to stay. The Blockchain technology instead of going away will enter into every aspect of our daily living.” The chairman went ahead to say that the Blockchain distributed ledger technology will be absorbed into the existing financial process.
On Cryptocurrency the ISA chairman gave caution instead on confidence. He said that; “Cryptocurrency is a very different game. We can say it smells like a bubble but who says that a Bitcoin is worth $7,000? He went on to say that he wants to ensure that the Cryptocurrency world is not a new mutation of the binary options industry.
Is there a possibility of banning ICO industry in Israel?
The chairman did not assure people that they were not going to ban ICO. He stated that; “we are going to monitor the ICO industry on a case by case bases instead of banning the whole industry.” According to him, ISA will assess all regulatory requirements of Cryptocurrency and all the legal obligations.
According to Professor Hauser, only ICOs that are determined to include securities will fall under the jurisdiction of the Israel Securities Exchange. He went on to say that there was also a possibility of ICOs that do not issue securities being regulated through Corporate Laws.
The professor also stressed there was a lack of transparency with the ICO industry. He stated that “ICOs are very welcomed in the funding industry. To avoid problems with the sector, ICO needs proper management and regulation.”
Last September the Israel Securities Authority formed a committee to deal with the ICO regulations in the country. The committee is also to establish whether ICOs should subject to securities regulations. The investigating committee was given a deadline of 31st December to give its findings. However even with the Committee working latest chairman’s comments seem to show that ISA has already come to the conclusion of the legal status of ICO in Israel.
We will, however, have to wait until the submissions in December to know whether regulations will be affected or not. It, however, seems that Israel wants to tame Cryptocurrency influence in the country.