The recent decision of the Israeli regulators says that cryptocurrencies are a means of payment and not securities since the local government wants to ensure protection for investors without stifling the technology.
However, now it has become clear that quite a lot of major companies intend to invest in and actually work with cryptocurrencies. Many of them have even added “Blockchain” to their names.
For this reason, the Israeli authorities believe it is important to establish the necessary regulatory measures to let those companies work with legal assets. They also want to prevent any frauds and stop con artists from luring eager investors. The whole issue is described in the Times of Israel report.
First regulatory measures
Quite recently, the Israeli regulators first approached cryptocurrencies and did the same thing as all countries approving crypto do– imposed taxes on crypto profits. Besides, the government initiated a research to make its own virtual coin named ‘Shekel.’ The country’s central bank is still researching this opportunity with an intention to make the country less dependent on cash.
The Times of Israel believes that if the local virtual currency is approved, the expenses on creating it will be included in the 2019 budget. It is a centralized coin the government wants, with all the necessary anti-money-laundering procedures followed, and Bitcoin does not meet those needs.
The possible outcome
So the chances are that the regulatory measures in Israel will ultimately support and adopt the circulation of digital coins. The central bank is stepping in and the authorities are keeping an eye on the industry development. Who knows, Israel may even become a safe haven for cryptocurrencies and be one of the first to implement the new technology widely.
The mass adoption of digital assets in Israel could impact the other markets too and attract institutional investors, which is always good for this sphere to develop and bring the market prices up.
Arman Shirinyan
Godfrey Benjamin
Dan Burgin
Alex Dovbnya