Israeli Committee Releases Advice for ICO Regulation

Wilfred Michael 

Wilfred Michael

News reporter

06 March 2019,
21:34
Israeli Committee Releases Advice for ICO Regulation

A committee set up by the Israel Securities Authority (ISA) in 2017 to look into what measures it could take to regulate initial coin offerings has today, March 6 released its final recommendations to the regulatory body.

According to a Reuters update, the committee made the following recommendations to ISA:

  • The creation of a state-regulated platform for trading cryptocurrencies and allowing projects to issue digital tokens to investors in exchange for capital.

  • The application of existing securities to law to digital tokens issued to investors by crypto projects. However, the committee suggested that the regulators tweak the rules to “include ‘unique’ disclosure demands for companies.”

Although ISA did not provide a timeline on when the committee’s recommendations would be implemented, it appeared that it likely would adopt the measures in the coming months or at least later.

Reviewing the current state of the ICO market and the frenzy that led to the regulators deciding the set up the committee, ISA Chair, Anat Guetta said in the report,

“The excitement that defined the field in 2017 has cooled off, but the technology is here to stay.”

She highlighted that the potential applications of the technology could be an excellent way to attract new investors to the country, but admitted that they face a challenge on how to balance the innovation with adequate investor protection.

Whatever decision, the ISA reaches in the coming months, the current development has already added the region to the list of countries likely to release crypto regulation in 2019.

Since the turn of the year, Stmarket.co has reported the following efforts to regulate cryptocurrencies by different countries such as Russia, India, Thailand, Lithuania, and Cyprus.

 

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