Cryptocurrency Firms May Be Banned on Tel Aviv Stock Exchange

Announcements, News, Regulation | December 28, 2017 By:

The Israel Securities Authority (ISA) said it will propose regulation to ban cryptocurrency companies from trading on the Tel Aviv Stock Exchange (TASE).

At a business conference held on Dec. 26, ISA chairman Shmuel Hauser said they would not allow cryptocurrency companies to trade on TASE. If already listed, its trading will be suspended. He added that the ISA must find the appropriate regulation for such companies. Hauser also said that bitcoin behaves like a bubble and they don’t want investors to be subject to that volatility and uncertainty.

“There is an importance to signal to the market where things are… Investors should know where we stand,” Hauser said.

Earlier this month, Hauser said that they were working on a regulatory framework that will consider how they have to report activities to the regulators and investors, how money laundering concerns should be addressed, and how their valuations should work.

The regulatory framework will be presented to the ISA board next week, according to Hauser. If approved, it would be subject to a public hearing and then the stock exchange bylaws would need to be amended.

Last week, the Ministry of Finance and the Bank of Israel, the country’s central bank, revealed plans for a state-sponsored cryptocurrency called the digital shekel. The cryptocurrency would be based on blockchain technology and would correspond in value to physical shekels. The cryptocurrency is aimed at reducing the country’s cash transactions, which are often viewed as being used for increased tax evasion and money laundering.