Professor Schmuel Hauser, chairman of the Israel Securities Authority (ISA) draws several regulator’s concerns regarding cryptocurrencies and ICOs.
Blockchain and Crypto industry
Hauser opens his address by seeking difference between the blockchain and cryptocurrency industry.
He stated that,
“blockchain technology is here to stay as well as enters every aspect of our lives”.
Accordingly, he suggested the ISA’s expecting that DLT will become embedded in existing financial processes.
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The Hauser being more caution regarding crypto assets states that cryptocurrencies are,
“is a totally different game. It smells like a bubble. Who says that bitcoin is worth $7000?!”. Want[s] to make sure that the world of [cryptocurrencies] is not a new mutation of the binary options industry”.
Clearly, refer ICOs on cases base, not ban
The Chairman, Schmuel Hauser underlines that ISA will assess the regulatory requirements and legal obligations on ICOs. Thus, it will be based upon the accuracies of each ICO. However, the ISA will not implement a totally ban on the industry.
Schemuel Hauser stated that only ICOs determines to comprise securities. Since it will fall under the regulatory jurisdiction of the ISA. He adds the more possibilities that ICOs that do not issues securities that may still be subject to regulation “along with corporate laws”.
Professor Hauser also emphasized his concerns stating that
“the lack of transparency in the ICO industry, ICOs are a part of a welcomed evolution in the funding industry. But it needs to be properly managed and regulated”.
In September, the ISA announces that it will launch a new committee task with assessing the need for IOC regulations in Israel. Sinc the committee is expects to deliver its assessments by December 31st. Schmuel Hauser’s statements that indicate that the ISA has conclusions regarding the legal status of ICOs in Israel.
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