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A new press release revealed that the Tel Aviv Stock Exchange is notably working towards regulating cryptocurrency trading on its platform.
Israel has recently revealed its plans for regulating digital assets in the country.
Interest for Bitcoin and Ethereum is increasing globally, as a billion dollar stock exchange is planning to open its door to digital assets.
According to a recent press release, it was announced that the Tel Aviv Stock Exchange (TASE) is working towards regulating cryptocurrency trading. The Stock Exchange has published a draft for public comments for approval of the authorized activities of Non-Banking Members (NBMs) to include trading in Cryptocurrency.
Customer protection is a key part of the structure of activity, the press release remarked. Once crypto trading has been regulated, customers with fiat currencies will be able to deposit their funds that are meant for investment in digital currencies. Withdrawal of funds generated from said currencies will also be enabled for customers.
The proposed structure will enable the customer to deposit money (Fiat money) that are designated for investment in crypto currency and withdraw monies originating from those currencies in the following manner: the NBM will contact two functions – the first, a licensed provider of Cryptocurrency trading services, and the second, a licensed provider of custodial services for those currencies.
Israel seeks to create a regulatory framework for digital assets in the countries
To carry out a cryptocurrency purchase, customers will need to make a deposit into their accounts, with the NBM funds in fiat currencies, either in NIS or a foreign fiat currency. The fiat currencies will later be deposited in an omnibus account of the NBM, through the platform providing the trading service.
The purchase will be approved and executed after the order to purchase the cryptocurrencies has been received from the customers. The process will be recorded in the customer’s account with the NBM
When the customer gives an order to sell the Cryptocurrency, the provider of trading services will sell the coins and credit the NBM’s omnibus account by the amount of consideration (Fiat money) received and thereafter the consideration will be transferred into the customer’s account with the NBM.
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Meanwhile, cryptocurrency regulation in Israel has continued to record progress in the last few years. In a report published by the Chief Economist in the Ministry of Finance in November, titled “Regulation of the Digital Assets Sector – Roadmap to a Policy” highlighted the goal of crypto regulation in the country.
The report explains that crypto regulation in Israel is intended to create a framework for financial activists and services particular to digital assets, similar to the one that applies to non-digital assets in the market, while taking into consideration the fact that cryptocurrencies have their own distinct features.
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