Market Regulator From Israel’s ISA Sees Room For Cryptocurrency Trading In The Future
The Israel Securities Authority has recently recommended creating of a platform to trade cryptocurrencies under enhanced regulation, which would allow companies to raise money by issuing digital tokens to investors.
After studying the sector for around two years, the national agency’s chair Anat Guetta has affirmed that the excitement for the Initial Coin Offering (ICO) market, which was reaching all-time highs at the beginning of 2018, has cooled down, but the strength of the technology is here to stay.
In fact, companies from all over the world are using the blockchain in their projects. The distributed ledger technology (DLT) is being used in several industries like logistics, agriculture and the financial industry. Not only Bitcoin is widely known right now, but it is seen as an alternative to some more traditional assets like stocks.
Attracting New Investors
Part of the reason why the Israel Securities Authorities is interested in regulating the blockchain and leveraging it to use it to offer investments is that the amount of investment that is being made in Tel Aviv right now is lower from what it was a year ago. This way, Initial Coin Offerings could be an interesting boost for the economy.
According to Guetta, technological innovation could help to increase the competition in the market and to streamline it as well. However, it is important to always find value and to protect the investors from scammers and companies which are not prepared to launch ICOs.
The committee has also suggested that the securities laws should be applied to crypto but “tweaked” a bit in order to be more efficient to legislative this area.
At the time, no final decision on whether to move forward or not was defined.