Recently, Israel is indicating several latest moves towards cryptocurrency regulations, according to the Times of Israel. The Israeli authorities are looking forward a new necessity to establish strict regulations on crypto industries.
A speedy drop in bitcoin value at the beginning of the 2018 has resulted to regulators questioning crypto industries in Israel. Since it is a major drawback for bitcoin and the country that many companies’ wants to invest in cryptocurrencies. Meanwhile the government of Israel had halted the crypto trading, stated Shmuel Hauser, the head of the Israel Securities Authority.
“A lot of companies want to jump on the cryptocurrency bandwagon. Companies have renamed their businesses to add “blockchain” to their names to inflate their stock prices. Regulators are concerned that stock brokers will use these tactics to lure in potential investors for companies that are not bitcoin or blockchain-related”.
Taxation on cryptocurrencies have now become a universal measure to regulate crypto market effectively. In this regard, the government of South Korea investigated South Korea’s exchange Bithumb. The investigation point towards increasing profits by Bithumb but by not having any definite evidence by authority, Bithumb cleared out the investigation procedure.
Emergence of Shekel – Israel’s own cryptocurrency
Herein, the startup culture of Israel has led to many companies wanting to expand their operations within the country. Moreover, the government has even involved in launching its own cryptocurrency “Shekel”. Accordingly, the Bank of Israel is hoping that the implication if new digital currency will gradually lessens the dependency on cash.
The report stated that,
“An approval for a digital currency would allow for the currency to be added into the 2019 budget”.
Moreover, the new digital currency Shekel could allow for safer and fastest way to conduct transactions. It can also influence blockchain that offers the potential to smart contracts that allows agreements for self-regulating.
Further added that, the Shekel digital currency can be a centralized and also prevents money laundering rules in Israel;
“Bitcoin poses concerns for Israel’s money laundering rules due to the decentralization of the currency. There is also anonymity with bitcoin that’s not present with a digital shekel. But Israel is posed to benefit from blockchain and virtual currencies even if a digital shekel never comes to fruition”.
With the same intentions, Israel crypto regulations eventually have to be able to support and facilitate the exchange of cryptocurrencies. Thus, Israel could become localized cryptocurrencies refugee and first to watch in the battle of cryptocurrency adoption.