Israel’s Finance Ministry Endorses New Procedures for Crypto Regulations

  • Shira Greenberg recommends an inclusive regulatory procedure to monitor the cryptocurrency industry.
  • She trusts the country should strengthen protection and assurance to investors.

Shira Greenburg, Israel’s Finance Ministry Chief Economist, published new procedures for crypto regulation on November 28. She proposes a more inclusive regulatory agenda that would monitor cryptocurrency issuers and trading platforms while increasing the powers of financial regulators.

The new endorsements included creating a new supervisory infrastructure, introducing laws to supervise and authorize the issuance of supported virtual assets like stablecoins, and enhancing financial services via such tokens.

Also, the guidelines proposed a policy to give BoI (Bank of Israel) powers to monitor virtual assets with substantial stability or fiscal effect. Moreover, it would support tax payments on crypto outside the nation via the central bank.

Finally, the application would form an inter-ministerial board to oversee the regulation of DAOs (decentralized autonomous organizations). Also, Greenberg suggested that the SFSP (Supervisor of Financial Services Providers) should have more authority to monitor licensing regulations and to form a more inclusive taxation agenda for the buying & selling of virtual assets.

She stressed the need for policymakers to consider the technological neutrality concept when enacting crypto-related rules.

Is Israel a Crypto-Centric Nation?

Data shows Israelis have completed 21 million blockchain-related transactions. That’s 0.04% of all cryptocurrency transactions globally. The nation’s market supervisor approved the first permanent certificate for Hybrid Bridge in early September, allowing the firm to offer cryptocurrency services.

Meanwhile, TASE (Tel Aviv Stock Exchange) confirmed (in late October) that the team contemplated creating a blockchain-based crypto trading platform. Nevertheless, Israel isn’t that massive on digital assets, ranking 111th in Chainalysis’ global cryptocurrency adoption index.

However, the latest plan follows the nation’s latest efforts to include crypto in its economy. Nevertheless, a supervisory framework sounds like an impressive starting point. It would give interested companies a definite system to follow whenever launching & expanding their undertakings.

Moreover, that would allow firms to operate regulated and compliant entities from Israel, removing the need to seek licenses from crypto-friendlier nations such as Gibraltar and Malta.

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