One of Israel’s toughest financial regulators has made a surprising move to welcome Initial Coin Offerings (ICOs) and Cryptocrurrencies in general. The soon to be ex-chairman of Israel’s Security Authority (ISA) recently mentioned the need to encourage an International Financial Centre based on ICOs.
In his last speech at the Israeli Coporation Conference as head of the ISA, Professor Shmuel Hauser talked about the main hurdles that the regulatory body still has to deal with;
“We will have to bring order to the market. Some countries decided to examine digital tokens on a case by case basis. A small number decided to ban them. We have decided to find out, with a team headed by the chief economist and the head of the corporations division, under which term is it, a security, coin or some hybrid I call a security-coin?
“The team is meant to file its report by the end of December. We will have to define for ourselves and the market what is this beast? Among other things, we will need to consider expanding the supervision on security-coin and define a proper regulatory framework, different from the one we know for IPOs.”
“I believe that the topic of digital currencies and their offerings must receive a favorable regulatory response, maybe even daring somewhat, to give a chance for the option to develop an International financial centre for security-coin from the type of ICOs”
He further made it known that he prefers a paternalistic sort of structure to ensure that ICOs do not deviate from their core purpose.
Israel has always prided itself as the ‘Startup Nation’ as such it is only natural that it will want to encourage innovation and be a significant player in the blockchain space.
With a favorable environment and regulatory framework, it is expected that a good number of blockchain-based enterprises and ICO token sale events will emanate from Israel in the couple of months coming.