Crypto Regulation Guidelines Paving in Israel

• More than five percent of adults in Israel are active crypto investors. 
• There are more than five crypto ATMs in Israel.  

Israel’s chief economist Shira Greenberg has proposed a list of suggestions for policymakers on how to deal with digital asset laws in the country to safely drive crypto adoption.

Greenberg submitted a detailed report of 109 pages on November 28 to the Minister of Finance on how to adopt crypto safely in the country.  

Shira noted, “The regulation processes are being formulated and determined during this period in various countries in the Western world and it is recommended that the state of Israel will act in accordance with the emerging standards in the developed world.”

The submitted recommendation for regulating the digital assets market are as follows. 

Removing the barriers that exist under the existing regulatory framework:- clarifying the government policy concerning increasing the number of investors in the field, among other things, by deciding the existing licensing and continuing to monitor the implementation of measures to ensure the provision of adequate banking services, under risk management as required for funds derived from digital assets.     

Israel’s chief economist suggested introducing a committee to regulate blockchain-based decentralized autonomous organizations (DA0s). She further explained the need to introduce regulations on stablecoin providers in Israel.

Recently Israeli local cryptocurrency exchange Bits of Gold became the first digital platform to receive a capital market license.

In September, regulators released Israel’s first crypto license to Hybrid Bridge Holdings (HBH). “With the license and the Bank of Israel, recent orders will be able to resolve most of the bank issues,” regulators stated. 

Earlier on August 1, 2022, TheCoinRepublic reported that Since January 2019, Israeli organizations and buyers have been likely to limit cash installments under the Law for the Reduction in the Use of Cash. 

It’s pointed toward moving the nation’s residents and organizations toward computerized installments, permitting specialists to track tax avoidance, underground market action, and tax evasion more effectively. 

In Shira’s survey, a total of 21 million blockchain-based transactions are completed by Israeli residents within a year. As per the reports, only 2% of Israel recorded having a crypto wallet.

According to reports, Earlier on June 20, 2022, Israel and Hong Kong collaborated to trail new digital currency, including against cyber risk.  

A statement revealed that the joint project will begin in the third semester and will be using a two-tier central bank digital currency (CBDC). The central bank will issue it, and financial intermediaries such as banks will perform its distribution. 

Israel abandoned its original attempt in 2018 after a panel assembled by the central bank advised against releasing a digital version of the shekel. Israel is, again, in fits and turns, returning to the idea of a CBDC.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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