Israeli regulator creates blockchain development committee in country

The Israel Securities Commission (ISA) has created a committee to develop the blockchain industry in the country, as well asintends to identify regulations that impede the implementation of the latest technologies.

The regulator said that he intends to investigatethe possibilities of practical application of distributed registry technology and focus on the development of platforms that issue blockchain-based securities, as well as use tokens and smart contracts. Previously, the ISA already considered the risks associated with the ICO, after which it announced the need to amend the regulation of the cryptocurrency industry in order to create the appropriate infrastructure for stock tokens.

The Commission emphasized that technologyA distributed registry has great potential for the development of the Israeli market. In particular, blockchain can reduce trading costs and economic risks, as well as open access to the capital market for small and medium-sized enterprises.

To date, the committee has not identifiedsignificant risks that the blockchain can carry, except for its novelty. ISA said that if blockchain-based platforms comply with regulatory rules, fight money laundering and do not violate financial stability, the regulator will take a “neutral” approach to technology.

However, according to ISA, most of the benefitsblockchains are only theoretical, therefore, the regulator plans to find out how the technology will "prove itself" in practice. In addition, ISA intends to improve the regulation of the cryptocurrency industry in Israel.

Since the development of capital markets isThe state’s priority task, the committee will work out provisions that impede the development of the digital market in the country. ISA also proposed attracting entrepreneurs who could provide evidence of the concept to simplify the implementation of the blockchain in various fields of activity.

Note that ISA has not always contributeddevelopment of innovations in the country. For example, two years ago, the regulator proposed banning the trading of shares of cryptocurrency companies on Tel Aviv stock exchanges, and in August last year, investors could not pay taxes on crypto assets, as banks refused to accept funds received from trading in digital currencies.

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