The fintech regulator in Israel is moving its licensing regime in order to encourage further competition in the field.
According to an announcement made on Monday, the Capital Market Authority in Israel is looking to alter how fintech licenses are distributed in the nation. The state regulator is currently sifting through some 2000 fintech and blockchain firms for regulation. Because of the massive demand, the authority is setting up a licensing fast track, to make the job easier for them.
According to ta report by Calcallist, the fast-tracking program consists of creating small industry-specific authority teams reviewing applications.
The head of the Authority Dr Moshe Barkat said:
“Business and technological innovation and the relationship with the industry are the basic principles that guide the Authority in its operations. The Authority is engaged in the licensing and regulation of fintech companies on a regular basis, including digital insurance companies, P2P platforms and credit providers, digital wallets, Blockchain-based fintech ventures and other payment services providers.”
The authority is also reviewing its current standards concerning fintech insurance.
The authority's move is part of the bigger picture by the ministry of finance in Israel to promote further financial innovation. Furthermore, the lawful body actually just recently joined the Global Financial Innovation Network. The World Bank and International Monetary Authority (IMF) are also on board as members.
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
The fintech and blockchain efforts by the finance ministry are contrasted by the banking regulations in the nation. As reported by CoinDesk, earlier conversations between the Israeli blockchain and cryptocurrency heads and the news outlet held a negative crypto outlook across the banking sector.
“All cryptocurrency traders and most fintech firms dealing with cryptocurrencies have to seek banking solutions outside of Israel.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!