The Israeli authorities have published a document on intermediaries of digital assets – cryptocurrencies are becoming popular in the country, so officials intend to control investors.
The Israel Securities Authority (ISA) has proposed a new structure to regulate cryptocurrencies as digital assets become more popular and more than 150 crypto companies operate in the country. The ISA promises to eliminate the risks associated with the new asset class and provide authorities with the means to regulate the industry.
The regulator intends to gain powers to oversee the digital asset industry as a whole in order to set requirements for cryptocurrency issuers and intermediaries, impose sanctions and fines. The proposal will be discussed until February 12.
According to the document, management officials intend to require intermediaries to comply with the rules that already apply to intermediaries in the traditional securities industry – the presence of a license, compliance with capital adequacy standards.
The document proposes to take into account the unique features of digital assets, namely the ability to use smart contracts and tokens to complete tasks. ISA wants to eliminate opportunities for fraud and market manipulation by giving authorities the ability to intervene in certain processes if there is any suspicion.
Recently, Chief Economist at the Israeli Ministry of Finance, Shira Greenberg, proposed updating the legislation and expanding the powers of the ISA to increase the protection of crypto investors.
Source: Bits
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