Israel Rangkul Crypto Industry When Global Regulators Fail To Set Cryptocurrencies

Israel embraces cryptocurrencies. (Photo; Doc. Cryptocoin)

JAKARTA The regulation of Israel's Securities Authority (ISA) digital assets can amend monetary laws and include cryptocurrencies into the regulation.

ISA has submitted a proposal to provide maximum security to crypto investors in Israel. This is intended to anticipate a similar incident that hit the FTX crypto exchange last November. The bankruptcy of FTX has harmed its investors.

In its proposal, ISA outlined that cryptocurrencies should be included in the national securities law. That way, regulators can oversee cryptocurrency trading operations in the country.

Not only that, the proposal also plans to include crypto assets in the category of financial instruments along with securities, marketing, and mutual investment. US regulators intend to provide extra protection to their citizens who invest in digital assets.

"Cryptocurrency is a digital representation of the value used for the purpose of financial investment and can be transferred and stored electronically using distributed ledger technology or other technologies," said ISA, quoted from CryptoPotato.

In this case, the Israeli government does not appear to be tough on cryptocurrencies. Instead, they embrace the crypto industry because it is claimed to have a positive impact on Israel's economic growth. They also assess the technology that underlies cryptocurrencies can provide efficiency in various fields.

"Advanced technology in these assets can lead to economic efficiency in many fields, reduce costs, save the need for intermediaries and optimize how information is transferred between entities," the proposal reads.

ISA added that cryptocurrencies have become a common niche in the Mediterranean country, with more than 200,000 Israelis having exposure to the market and about 150 companies operating in the field. This proposal is open to public comments until February 12 and can take effect after six months.

Global Regulatory fail

ISA thinks global regulators failed to enforce related rules on the crypto industry last year, leading to the death of many companies, such as the FTX and Celsius Network. It also shows that the founder of Celsius is Alex Mashinsky, who is from Israel.

Celsius suspended withdrawal (withdrawal), exchange (swap), and inter-account transfers in June last year, citing "extreme market conditions." The company is raising hopes that the move will stabilize its liquidity.

What happened was the opposite. Celsius was forced to lay off 150 employees in July. A week later, the crypto lending company officially filed for bankruptcy protection. Then, Alex Mashinsky resigned from the position of CEO in September 2022. One of Celsius's creditors is the bankrupt partner company FTX, Alameda Research.