Tel Aviv Stock Exchange Takes Steps to Allow Crypto Trading – A draft proposal to allow customers of non-banking institutions (NBMs) among its members to purchase and sell cryptocurrencies was issued by the Tel Aviv Stock Exchange (TASE). It plans to add cryptocurrency trading to the list of permitted activities for these businesses.
NBMs serve as intermediaries and offer brokerage, investing, and advisory services. They are allowed by law to conduct a variety of transactions, including the transfer of funds, although they cannot accept consumer direct deposits or perform custodial duties. The only public exchange in Israel is currently looking for input on its regulatory effort.
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On Monday, a request for comments was posted. Upon their receipt, the proposal will be submitted for approval by the Board of Directors, it said and elaborated: “This is another step in the advancement and development of the Israeli capital market that aims to encourage innovation and competition, while mitigating the risks and protecting the customers.”
TASE noted the turbulent events that have occurred in the crypto space over the course of the past year in a press statement while emphasizing the rising customer demand and the increased involvement of regulated institutions. It emphasized the need for legislation to reduce the risks associated with all of this.
The new regulations are designed to make it possible for users to deposit fiat money to invest in crypto assets and withdraw money from such investments. NBMs will negotiate with two categories of regulated businesses on their behalf: providers of trading services and providers of custodial services for cryptocurrencies.
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The Bank of Israel presented suggestions last week for governing and monitoring stablecoin-related activity in the country. Israel’s Ministry of Finance published its own regulations for digital asset regulation in November 2022. The Israel Securities Authority (ISA) published a draft proposal to specify the legal standing of cryptocurrencies in January of this year.
