A new report by The Times of Israel is indicating some of the latest moves made by Israeli authorities to move closer towards cryptocurrency regulation. According to the report, many major companies within Israel are wanting to invest in and start working with cryptocurrencies and therefore the authorities are seeing a new urgency to establish regulations to ensure the cryptocurrency industry can flourish. According to The Times of Israel:
“A lot of companies want to jump on the cryptocurrency bandwagon. Companies have renamed their businesses to add “blockchain” to their names to inflate their stock prices. Regulators are concerned that stock brokers will use these tactics to lure in potential investors for companies that are not bitcoin or blockchain-related.”
Very recently, authorities have made moves to tax cryptocurrencies, as we know though this is becoming a universal thing, with the majority of crypto-accepting states ensuring that assets are taxed fairly. Moreover, the government have investigated and researched the complexities surrounding the creation of a government-led cryptocurrency, named ‘Shekel’. As it stands, The Bank of Israel are still looking at the implications of Shekel, in the hope to eventually reduce the countries dependency on cash.
According to The Times of Israel:
“An approval for a digital currency would allow for the currency to be added into the 2019 budget.”
“The digital shekel could leverage blockchain, allowing for a faster, safer way to conduct transactions. Blockchain offers the potential to offer smart contracts that allow for agreements to be self-regulating when certain criteria are met. The digital shekel would be a centralized currency, yet it would be safe and also meet Israel’s money laundering rules. Bitcoin poses concerns for Israel’s money laundering rules due to the decentralization of the currency. There is also anonymity with bitcoin that’s not present with a digital shekel.”
See the full report for yourself, here-
With all of this in mind, we expect regulation in Israel to suit the cryptocurrency regulation in the sense that, regulation will eventually be established to support and facilitate the exchange of cryptocurrencies. With the central bank weighing in and with the government paying plenty of attention to the industry, Israel could become a localised haven for cryptocurrencies and thus, could be one of the frontrunners in the race for cryptocurrency adoption.
Once regulations fall into place, many large companies form within Israel could start to pick up their investment strategies, meaning that actually, this could have positive implications for the rest of the markets too, regulation in Israel could trigger some large scale, institutional investments which as we know will help to drive market prices up.
Therefore, Israel really is one to watch at the moment.