Israel regulator wants law amended for better crypto regulation

The Israel Securities Authority (ISA) has put forward draft amendments on crypto. It aims to protect citizens from the risks associated with trading in digital assets.

The ISA is responsible for “protecting the interests of the public investing in securities”. according to draft bill, it wants the country to be agile and flexible so that laws can be quickly formulated and implemented in line with the fast-paced, highly dynamic nature of cryptocurrencies and blockchain. If this draft amendment becomes law, Israel will have digital assets regulated by the same rules governing securities such as stocks, exchange-traded funds (ETFs) and other instruments.

According to the ISA report, it aims to protect Israelis from increased exposure to crypto, which the regulator said is set to peak in 2022. The contraction of crypto prices and macroeconomic factors in the country and around the world saw asset valuations for more than half, compounding problems. Some CeFi operators.

Eventually, the collapse of FTX and the bankruptcy of major lending platforms such as voyager digital, blockfiAnd Celsius Network The resulting liquidity crisis took a toll on investors. Celsius Network was headquartered in Hoboken, New Jersey, but maintained offices in four other countries. However, its CEO, Alex Mashinsky, has roots in Israel.

Reports indicated that investors are yet to recover over $4.2 billion from Celsius Network by July 2022. In early September 2022, Celsius Network wanted to pay Out of over $200 million of customer funds, $50 million is locked in their custody.

The ISA’s proposals are open for public comment until February 12. The regulator suggests that six months’ time be given before the law is amended, so that they can prepare for proper supervision.

Israel remains pro-technology, viewing cryptocurrencies and blockchain as opportunities to grow its economy and foster innovation.

Earlier, an analyst in Israel Proposed Giving more power to ISAs to regulate digital assets.

Starting August 1, Israel banned cash payments for personal and business transactions above $4.4k and $1.76k, respectively. The Israel Tax Authority said the goal is to combat money laundering and promote digital payments.

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