Israel Securities Head: Take a “Paternalistic” View of Crypto

FinTech, ICO News, Investing, News, Opinion, Regulation | July 12, 2017 By:

Shmuel Hauser, head of the Israeli Securities Authority, urged that initial coin offerings should be given closer scrutiny by regulators, taking what he termed a “paternalistic” view of them

Speaking in Tel Aviv, Hauser called on the industry and regulators to be pro-active in their efforts at policing the cryptocurrency sector.

“We have to address today what is happening with bitcoin, blockchain and ICOs that are challenging the current regulation around the world,” said Hauser. “It is here at the gates of the stock exchange. It is a new economy where the companies have no faces, and the investors have no faces. Our task is to get ready now in a proactive fashion before an event will occur that will hurt Israeli investors.”

Hauser claimed that there is a great deal of confusion regarding cryptocurrencies, with investors diving in before they understand the risks. Still, Hauser said bitcoin is here to stay.

“Gentlemen, this is not a passing phenomenon. It is here at the gates of the capital market. It is here at the gates of the stock exchange. Is it a widespread phenomenon, is it a phenomenon that requires the protection of the state?  Regulators?  In this new economy, thee are no faces for investors and there are no faces for companies.”