Tel Aviv Stock Exchange to Regulate Crypto Trading

The Tel Aviv Stock Exchange (TASE) is ready to permit crypto trading for clients of its members that do not belong to the banking industry.

This proposal comes as a consequence of the turmoil that was seen in the crypto industry in the previous year.

It has resulted in stricter regulations and scrutiny for the crypto market by a number of watchdogs in different countries.

Authorizing NBMs

The only public stock exchange of Israel, the TASE is willing to permit its non-banking members (NBMs) to add to their authorized activities by offering their clients the option to trade digital currencies.

The entities that would be permitted to do so include exchanges, insurance organizations, venture capitalists, brokerage firms and more.

The stock exchange stated that imposing a pertinent regulatory framework is essential for the industry, considering the crashes that had occurred in the space in the previous year.

The proposal put forward by TASE is aimed at customer protection. Traders would be allowed to deposit their fiat currencies in crypto.

As far as withdrawals are concerned, non-banking members would have to get in touch with an authorized custodian and a licensed digital asset services provider to process them.

To put it simply, the proposal would permit these entities to facilitate buying and selling of digital currencies on the demand of their clients.

Regulations

According to the stock exchange, local regulations should be in line with global ones because this would help the local financial ecosystem in attracting more foreign capital.

It further said that allowing customers of non-banking members to trade digital currencies could help in reducing the risks in the sector, encourage innovation and also boost competition.

Last year in October, the TASE had disclosed its intention of establishing a designated crypto platform powered by blockchain technology that would be used for issuing smart contracts and an array of tokens.

Itai Ben Zeev, the CEO of TASE, said that the platform would be rolled out in the next four years and was aimed at speeding up fintech’s development and adoption.

The changes

Earlier this year, the Israel Securities Authority (ISA) had revealed that three existing financial laws in the country could be amended to include cryptocurrencies.

The said amendments would help the watchdog in supervising the digital asset operations directly and cryptocurrencies would be added to the ‘financial instruments’ category, which also includes joint investments and securities.

The purpose is to ensure that Israeli participants in the crypto market are protected and highlight the technological improvement of the industry.

Just like the TSA, the Israeli watchdog also believes that the local economy can enjoy numerous benefits if it embraces digital assets, including inflow of foreign investments.

The ISA said that digital assets boast an advanced technology that can help in ensuring economic efficiency in various areas.

In addition, it would also bring down costs, eliminate the need for intermediaries and improve the way entities share information with each other.

This is certainly an important step for the crypto industry and participants in Israel.