The Tel Aviv Stock Exchange (TASE) plans on expanding services to include cryptocurrency trading for clients of their nonbanking members (NBMs). The TASE is Israel’s sole public trading platform for equity and debt. Announced on February 27, the TASE’s proposal is currently open for public feedback. Once comments are submitted, the proposal will be sent for approval by its Board of Directors.
“The demand for crypto trading in Israel is rising; making this a logical yet pioneering move for the TASE,” LBank CEO Allen Wei remarked. “Comments from the public will help shape this initiative better. Industry advice will provide experience and perspective. This is great news for Israeli investors. Providing investor security and facilitating crypto adoption is clearly at the heart of this proposal.”
NBMs are intermediaries who provide brokerage, investment, and advisory services. However, they are not allowed by law to accept direct deposits from the public or act as custodians.
Under the given proposal to change TASE rules, NBMs will serve 2 functions: “a licensed provider of cryptocurrency trading services, and a licensed provider of custodial services for those currencies.” Customers will be able to deposit fiat money designated for digital asset investment, which will then be sent to an “omnibus account.” Similarly, customers are also allowed to withdraw funds originating from the sale of crypto.
“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,” the announcement elaborated. The move was said to be a response to accommodate “growing demand” whilst controlling “risks that are inherent in this activity.”
In January, the Israeli Securities Authority (ISA) drafted a framework for regulating digital assets, placing them under the umbrella of securities. The report showed hopes of regulating digital assets with policies similar to those imposed on non-digital assets. On February 12, Israel’s markets regulator issued a warning against unlicensed crypto exchanges. Later that month, the Bank of Israel also published a document targeted toward local banks and credit card companies regarding the risks of engaging with crypto companies.
Disclaimer: This is a paid post and should not be treated as news/advice.
Source: https://ambcrypto.com/lbank-backs-tel-aviv-stock-exchanges-move-towards-offering-crypto-trading/