More crypto control – The evolution of cryptocurrency regulation in Israel can be based in part on a newly published document, which contains a set of advice on managing the sector.
Crypto regulation in Israel: a series of recommendations
The Chief Economist of the Israeli Ministry of Finance, Shira Greenberg, his institution submitted a 109-page report with recommendations on the regulation of cryptocurrencies. The document published on November 28 specifically mentions the need for a expansion of powers of the Israel Securities Authority.
The regulator claims that these powers are necessary, so that it can determine whether a digital asset belongs (or not) to Israeli securities laws. By expanding its powers, the Israel Securities Authority will also be able to oversee the activities of payment providers in the crypto industry.
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Investor security and monetary stability: licensing and regulation
To improve investor protection, Shira Greenberg wants to impose on the country stricter licensing requirements, cryptocurrency platforms and issuers. In addition, the document indicates that specific licensing and management rules should be put in place for issuers of stablecoins.
The report also allocates some lines to defend the stability of the country’s currency in the face of the risk of some cryptocurrencies. That is why he recommended the adoption of a law that would make it possible to transfer the management of digital assets that have “a significant impact on stability or money”, in the bank of israel.
Billions of cycles to the public treasury: a more comprehensive tax framework for cryptos
Regarding the issuance of these licenses, the document recommends extending the powers of the supervisory authority to financial service providers, so that the regulator can observe the rules of giving this type of regulatory approval.
By expanding its powers, authority can also grow a tax framework that is bigger, about buying and selling digital assets. The report also gives an important place to this tax on cryptocurrencies. The Israel Tax Authority estimates the amount of uncollected cryptocurrency taxes between 2019 and 2022 in several billion shekels.
Israel’s crypto scene continues to evolve. angry the growing interest of some local players in traditional blockchain finance and cryptocurrenciesregulatory clarity is an important condition for Israel to ultimately become fertile ground for the development of the sector.
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