Israel Could Let Businesses Raise Funds by Issuing Digital Tokens

  • Alex Dovbnya
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    Israel wants to capitalize on a spiking interest in security token offerings (STO)

Israel Could Let Businesses Raise Funds by Issuing Digital Tokens

The Israel Securities Authority (ISA) is proposing to create a platform for trading security token offerings (STOs), Reuters reports. By turning to the burgeoning financial sector, the regulatory watchdog wants to lure in more investors.


Crypto Asset Regulation Getting Serious in Israel

Crypto Asset Regulation Getting Serious in Israel

Attracting more capital

The number of publicly traded companies has declined over the last 10 years. In order to tackle this problem, Tel Aviv wants to allow companies to raise capital by issuing digital tokens.

According to ISA Chair Anat Guetta, the 2018 cryptocurrency market crash didn't take its toll on the underlying technology, Blockchain.

Ensuring investor protection

While the nascent technology holds a lot of promise, it's also crucial to make sure that investors are safe. The loosely regulated ICO market proved that a lot of homework had to be done when it comes to taming the ‘Wild West’ of cryptocurrencies.

ISA is mulling over applying securities laws to digital assets. Companies that are willing to issue digital assets will be put under intense scrutiny with ‘unique’ disclosure requirements.

Everything will be tokenized

Israel is not the first country to jump on the tokenization bandwagon — the UK and Australia are currently working on similar platforms.

As reported by U.Today, cryptocurrency unicorn Circle completed the acquisition of crowdfunding startup SeedInvest to focus on tokenization. Meanwhile, recently launched exchanges, such as Estonia-based DX.Exchange, allow purchasing the shares of US tech behemoths in the form of digital assets.

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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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