The race for crypto regulation is on – That’s it, all the countries are doing it. “Regulation” will be the watchword of 2023. As Europe strides forward on the subject with MiCA regulations, Israel follows suit. Decryption.
Israel ready to launch its crypto regulation?
It is a report of theIsrael Securities Authority (ISA) which announces that it wants to change three of its monetary laws in order to introduce cryptos into its fold. The trigger would be the bankruptcy of the FTX crypto exchange. Even if post-cataclysm analyzes tend to show that even reinforced regulation would not have not necessarily allowed to avoid the drama.
In contrast, for Israel, cryptos should fall into the category of financial assets (securities in English) in the same way as shares. Whereas elsewhere, and particularly in the USA, the debate is not settled Between Financial assets and raw materials (commodities in English), especially for Bitcoin, Israel would have made its choice. This is of course to protect investors. However, the repercussions of this new legislation would also be likely to restrain (a little too much?) the sector.
“Cryptocurrencies are digital representations of values used for financial investment. It may be transferred and stored via distributed ledger technology or any other technology.
Israel Securities Authority
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Cryptocurrencies, the engine of tomorrow’s economy?
Of course, the underlying objective is also to allow the influx of capital which could undoubtedly boost the country’s economy. Indeed, cryptos have achieved in recent years a great breakthrough in the Mediterranean countries. With over 200,000 Israelis exposed to the crypto market and 150 companies operating in this sector, the prospects for growth are promising. And that, Israel seems to have understood.
“Using this advanced technology could lead to more efficiency in many industries. Cost reduction, elimination of intermediaries, optimization of information paths between entities…”
The blockchain and crypto applications indeed offer new perspectives on monetary transactions. Instantaneous, free of charge, verifiable, traceable, tamper-proof… It is neither more nor less than the invention of the ‘cut and paste’ in a financial world which until then had remained stuck at the stage of ‘copy paste’.
The bill is open to comments from the Israeli population until February 12 next. It should then come into force six months later.
The year 2023 is already shaping up to be the year of continuity and strengthening of crypto regulation. The countries hear well impose their limits to this growing sector. Is it too premature? Only the future can tell us.
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