The Tel Aviv Stock Exchange wants to regulate crypto trading after the turbulent year of 2022

The Tel Aviv Stock Exchange wants to regulate crypto trading after the turbulent year of 2022

The Tel Aviv Stock Exchange (TASE) is ready to allow customers of its non-bank members to trade cryptocurrencies.

Their proposal is the result of the turmoil in the industry last year, which many observers believe was a prerequisite for the introduction of stricter regulations.

Authorize NBM

The TASE – Israel's only public exchange – wants to expand the authorized activities of its non-bank members (NBMs) to allow customers to trade digital currencies. Examples of such companies include brokerage firms, insurance organizations, stock exchanges, venture capitalists, and others.

The exchange recalled the cryptocurrency market crash in 2022 and emphasized the need to impose a relevant regulatory framework on the industry.

The TASE proposal focuses on customer protection. It allows traders to deposit fiat money into cryptocurrencies, while withdrawals can be made after non-bank members contact a licensed digital asset trading service provider and an authorized custodian. In other words, the possible rule will require NBMs to buy and sell cryptocurrencies at the request of customers.

The Israeli Stock Exchange believes that national regulations should align with global ones to attract more foreign capital into the local financial ecosystem. Giving the green light to NBMs to allow customers to trade cryptocurrencies could reduce risks in the industry, encourage competition and encourage innovation, she added.

The marketdisplayedIntentions in October last year to establish a designated blockchain-based cryptocurrency platform that would focus on smart contract technologies and issue a variety of tokens.

CEO Itai Ben-Zeev said the exchange should see the light of day in the next four years and aims to accelerate the development and adoption of fintech.

Israel will squeeze crypto into existing legislation

The Israel Securities Authority (ISA)revealedEarlier this year, it said it could amend three of its existing financial laws to accommodate cryptocurrencies. The changes will allow the regulator to directly monitor the operations of digital assets and place them in the “financial instruments” category, which includes securities and collective investments.

The main goal is to provide maximum security to Israeli crypto participants and highlight the technological advancement of the industry. Similar to TASE's proposal, the ISA believes that the adoption of digital assets could bring numerous benefits to the local economy, including a flow of foreign investment:

“The advanced technology in these assets can lead to economic efficiencies in many areas, reducing costs, eliminating the need for intermediaries and optimizing the way information is transferred between companies.”

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