The Israeli Securities Authority (ISA) has suggested a framework for regulations around digital assets due to the enhancing amount of Israeli investors and presence of around 150 functional companies in Israel, as reported by Cointelegraph.
According to Cointelegraph, the regulator unveiled a proposal in January, 2023, for achieving the “double value” around reacting to risks related to digital asset-based investments. Reportedly, the authority has developed panels over the past years to supervise cryptocurrencies’ issuance and back development of Israel’s digital markets. It is believed that the recent committee was assigned with the duty to examine the authority’s policy on investment products in digital assets. Furthermore, the authority also aims to oversee the digital asset industry.
On the basis of information by Cointelegraph, the document has revealed the communications and it’ll remain for public comment until February 12, 2023, along with a requirement for issuers of digital assets to unveil a prospectus-like document prior to issuance of the assets for trading. The regulator intends to encourage digital asset-based developments in Israel through creation of digital asset exchanges and permitting usage of digital assets as collateral.
Moreover, Cointelegraph noted that risks pertaining to digital assets were also taken into account such as chances for fraud and market manipulation, through granting the authority the right to intervene in suspected illegal cases.
(With insights from Cointelegraph)