Why Israel Rejects Bitcoin As A Security - MnTrendsNews

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Monday, 26 March 2018

Why Israel Rejects Bitcoin As A Security


Israel Securities Authority (ISA) Committee for the Examination and Regulation of Initial Coin Offerings (ICOs) issued a series of 'recommendations designed to dispel uncertainty and strike a balance between technological innovation and protection of investors'. In their report, they deliberated on whether cryptocurrencies as Bitcoin are securities.

Summary:


  • The ISA has said that cryptocurrencies that are to be used a media of payments, clearing or exchange and are not controlled by a central entity will not be deemed as securities.
  • Analysts are convinced that Israel has set a precedent as since the craze for cryptocurrencies began, it has been at the fore-front as regards regulation; using a hands-off approach.
  • The report went on to detail that cryptocurrencies that gave similar rights as the rights given by traditional securities as shares, and bonds will be deemed as securities.
  • On the other hand, cryptocurrencies that are purchased solely for consumption and use and not for investment purposes will not be deemed as securities.
  • The new Chairperson of the ISA has been hostile to Bitcoin, even announcing how her agency plans to ban it from the nation's stock exchange indices.
  • From the report, it is clear that regulators are attempting a balance as they are faced with realities brought about by cryptocurrencies and ICOs.
What do you think this ruling means for the future of cryptocurrency in Israeli?


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