In a bid to strengthen and develop blockchain enterprises in Israel, The Israeli Securities Authority (ISA) has filed for a Request For Information on 20 January for the identification of regulations hindering the progression of business ventures dealing with blockchain. Along with this, the ISA also seeks to know the uses and applications of Distributed Ledger Technology (DLT).
The ISA as an advocate of blockchain regulation has brought about the formation of a committee to bring about the development of the blockchain sector in the country.
DLT Risk Factors
The ISA has laid strict emphasis on DLT as holding the potential to promote the Israeli capital market with the committee asking for direct provisions that would bring about the advancement of a digital market sector. Additional information on risks concerned with cases of DLT based securities trading has also been demanded.
The DLT is targeted to reduce cost in trading whilst also reducing economic risks along with increased access for Small-Medium Enterprises (SME). The ISA has also expressed its interest in further analysis and study of the practical applications of blockchain technology. The ISA stated that the benefits concerned with DLT due to their early-stage adoption process are mostly theoretical with very limited practical uses.
ISA as a committee hasn’t ruled out specific risks and faltering with the blockchain sector, however, according to the committee, as long as strict regulations are followed and precautions are taken to maintain the financial equilibrium, blockchain isn’t a threat.
Growing Crypto Fondness
The rising crypto fondness in Israel comes as a surprise to many as the country was recently rocked with a series of crypto hacks. One such incident saw two Israeli brothers getting arrested in suspect of the Bitfinex hacking incident. The brothers were from the capital city of Jerusalem and were arrested by the Cyber Crime Unit of the Israeli police on 23 June 2019.