Israel’s sole public stock exchange is mulling over permitting its clients to trade digital currencies but faces regulatory opposition.
A draft for the approval of an expansion of digital asset trading activities to non-banking members has been published by the Tel Aviv Stock Exchange for public comments.
A recent announcement by the exchange stated the suggested structure will empower customers to deposit fiat money designated for investments in virtual currencies.
Non-banking members will act as licensed providers for digital asset trading and custodial services should the proposal be accepted. Customer funds will be placed in an “omnibus account” as the intermediary for digital asset trading activities.
It will also permit clients to take out funds originating from the sale of virtual currencies but the process is somewhat complicated. This has been done to alleviate risks and boost consumer protection, as per the announcement.
The announcement mentioned,
“This is another step in the advancement and development of the Israeli capital market that aims to encourage innovation and competition while mitigating the risks and protecting the customers.”
Once comments have been submitted, the plan will be sent for approval by the Tel Aviv Stock Exchange Board of Directors. Nonetheless, no timeframe was provided.
In the month of February, the chief executive officer of Israeli virtual asset trading and custody firm Altshuler Shaham Horizon, Ilan Sterk, commented that the reclassification is “changing everything here,” and added that it will kill the industry.
The exchange’s announcement mentioned the present regulatory approach in Israel is to “impose regulation on financial activities or services in digital assets similarly to that currently applied to non-digital assets.”
Nevertheless, the Tel Aviv Stock Exchange remained confident, mentioning:
“TASE believes that the alignment of local regulation with international regulation will attract more foreign investments and foreign investors into the Israeli market.”
In the month of September last year, Israeli digital asset exchange Bits of Gold became the 1st in the nation to receive a license from the Capital Markets Authority.
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