Israel’s sole public stock exchange wants to allow its clients to trade crypto but faces regulatory resistance.
The Tel Aviv Stock Exchange (TASE) has released a document supporting the extension of the crypto trading program to non-banks for public comment.
In the first TASE, a Feb. 27 announcement said that the proposed system will allow customers to use fiat money for investing in digital assets.
Non-banks will act as providers of support for crypto transactions and custody services if the proposal is approved. Clients’ funds will be deposited into an “omnibus account” as a service provider for crypto transactions.
It will also allow customers to withdraw money and sell crypto, but the process is a bit complicated. This was done to reduce risk and enhance customer protection, according to the notice.
“This is another step in the progress and development of Israel’s capital that seeks to promote innovation and competitiveness while reducing risk and protecting consumers.”
Once comments are submitted, the TASE Board will send the proposal for approval, but no timeline has been given. However, things may not be going well for the Tel Aviv Stock Exchange and its crypto trading goals.
Regulatory opinion in Israel is tough for the region as the bill intends to define crypto-assets as securities. In January, Israel’s Security Agency (ISA) proposed regulations for digital assets, bringing them under the security umbrella.
In February, the CEO of Israeli crypto trading and holding company Altshuler Shaham Horizon Ilan Sterk told Cointelegraph that the reclassification “changes everything here,” and added, “it will kill the industry.”
The TASE statement said that the current legal framework in Israel is to “enforce laws on financial services or services on digital assets in the same way that is currently applied to non-digital assets.”
However, TASE remained confident, concluding:
“TASE believes that supporting local standards and international standards will attract more foreign investment and investors to the Israeli market.”
In September, the Israeli crypto exchange Bits of Gold became the first in the country to receive permission from the market leaders.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up