Israel’s public stock exchange is suggesting regulatory amendments that would allow some clients to trade crypto assets. The proposals, which have been submitted for public consultation, come against the backdrop of a growing number of regulated institutions getting involved in the digital asset market, the exchange noted.
TASE Exchange Moves to Regulate Cryptocurrency Trading for Brokers
The Tel Aviv Stock Exchange (LEVEL) has published a draft proposing to allow non-banking institution (NBM) customers among its members to buy and sell cryptocurrency. It intends to expand the list of authorized activities for such entities in order to add cryptocurrency trading.
NBMs provide brokerage, investment and advisory services, and operate as intermediaries. While they can process various transactions, such as the transfer of funds, they are not permitted by law to accept direct deposits from customers or act as custodians.
Israel’s only public exchange is now seeking comment on its regulatory initiative. The call for comments was published Monday. Once the proposal is received, the proposal will be submitted for the approval of the Board of Directors, which said and elaborated:
This is another step in the advancement and development of the Israeli capital market that aims to encourage innovation and competition, while mitigating risks and protecting clients.
In a press release, TASE marked the turbulent events in the crypto space over the course of the past year and highlighted growing customer demand and increased participation from regulated institutions. He insisted that all this requires regulation that mitigates various risks.
The new rules are intended to allow clients to deposit fiat money to invest in crypto assets and withdraw funds derived from such investments. On your behalf, NBMs will deal with two types of licensed companies: merchant service providers and cryptocurrency custodial service providers.
Last week, the Bank of Israel released recommendations to regulate and supervise stablecoin-related activities in the country. In November 2022, the Israel Ministry of Finance issued its own guidelines for the regulation of digital assets. In January this year, the Israel Securities Authority (ISA) published a draft proposal to define the legal status of cryptocurrencies.
Do you think that Israel will gradually regulate all activities in the crypto market? Share your expectations in the comments section below.
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