As the nascent cryptocurrency market continues to thrive, criminals have also indulged in its activities. However, various authorities are thriving to contain the increasing number of cyber criminals trying to transact in digital currencies while conducting their illegal activities. The Israel Securities Authority (ISA) has disclosed its final report on the crypto industry.
The report suggests that ISA may be moving forward with crypto regulations. In connection to that, the Authority has also been called to assist in the enhancement of the development of a national platform for trading digital currencies. The platform targets to enable companies to raise money by issuing various digital tokens of their choice.
All these recommendations, published by a committee that was set up by the Israel Securities Authority in 2007, come in handy at a time when the investment in the listed companies is falling considerably.
The government believes that the set up of a regulated crypto sector will attract a lot of new investment simultaneously increasing competition in the capital markets.
Will Supervision Bring Stability in the Volatile Sector?
The committee that is headed by a former corporate finance department Adv Moti Yamin and Securities Authority chief economist Dr. Gitit Gur-Gershgoren believes supervision can bring stability in the volatile sector. The committee has also requested the regulator to consider some amendments in the existing Securities Law to include Israeli public offerings subject to a distributed ledger and trading in them.
The report also suggested the creation of a dependable sandbox regime that will help in the increase of the rate of innovation rates in the crypto industry. Furthermore, the regime is expected to have the capability of handling cryptographic asset offerings together with all the accompanying entrepreneurs in this format.
Anat Guetta, the ISA Chair, welcomed these recommendations acknowledging that the excitement that permeated the ICO sector in 2017 has since cooled down. However, the underlying technology is here to stay
He urged the stakeholders, companies, and parties involved in the crypto sector to sustain continuous, direct, and long-term contact with ISA to facilitate the industry’s development.