Shira Greenberg, the Chief Economist at the Ministry of Finance, published a report submitted to the Minister of Finance on a wide range of issues related to digital assets and made recommendations for Israel’s regulation of the industry.
The report addresses a wide range of digital asset issues, including an overview of the cryptocurrency market, particularly the global and Israeli markets for digital assets, and an analysis of the risks and solutions to major obstacles impeding the market’s proper development.
According to the report, Shira Greenberg made recommendations for regulating the market for digital assets. She suggested removing the obstacles created by the current regulatory framework, clarifying the government’s position on increasing investor entry, among other things, by making a decision regarding the current licensing requests, stepping up enforcement efforts for services rendered without a license, and continuing to pay attention to the implementation of policies to ensure the provision of adequate banking services.
Shira Greenberg also proposed improving and expanding the current regulatory framework, such as regulating the supervisor’s authority over financial service providers in relation to concurrent licenses obtained abroad, clarifying and developing tax payment mechanisms for activities involving digital assets to reduce barriers and increase acknowledgments, and broadening the scope of the Securities Authority’s asset and activity regulation.
Shira also advocated for the creation of a new regulatory framework, the establishment of licensing authority and supervision over the creation and distribution of secure digital assets, including stable currencies, and the provision of financial services using them, as well as the creation of a mechanism for the transfer of supervision over digital assets with a high level of stability to the Bank of Israel. In addition, an inter-ministerial committee will be formed to oversee the regulation of decentralized autonomous organizations (DAOs).
The Chief Economist, Shira Greenberg, stated in the report:
“The regulation processes are being formulated and determined during this period in various countries in the Western world and it is recommended that the state of Israel will act in accordance with the emerging standards in the developed world. I thank the team of the division headed by Dr. Shmuel Abramson, the regulators, the divisions and units in the Ministry of Finance, the relevant government officials, and the many other parties who assisted in the preparation of this work.”
A team from the Chief Economist’s Division worked on the report for a year at the request of the Minister of Finance, consulting with regulators, officials from relevant government agencies, experts from the local industry, and regulators from similarly developed nations.
Minister of Finance Avigdor Lieberman added in the report:
“All of these require an informed policy by the government. I thank the Chief Economist for the comprehensive, professional and dedicated work carried out by her and her staff on the subject, which is the most comprehensive and up-to-date report that currently exists on this subject for use by the government, and expects that the report will serve as a basis for future decisions and legislation on the subject.”
The rate of adoption of cryptocurrencies in Israel appears to be on the rise. The Tel Aviv Stock Exchange (TASE) announced on October 24 its intention to build a blockchain-based platform to expand its trading services to include cryptocurrencies.
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