Professor Shmuel Hauser, Chairman of the Israel Securities Authority (ISA), is giving a speech right now about Initial Coin Offering (ICO) regulations at a fintech conference in Tel Aviv. Finance Magnates is reporting live from the event.
“There’s a difference between blockchain technology in general, and cryptocurrencies and ICOs. Blockchain technology is here to stay and will enter every aspect of our lives. The coins are a totally different game. It smells like a bubble. Who says that Bitcoin is worth 7000$?!
I want to make sure that the world of coins is not a new mutation of the binary options industry. We’re going to look at the ICO industry on a case by case basis, not ban it altogether.
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But first, we have to decide whether it’s a financial tool that falls under our jurisdiction. If it’s a coin and not a security, it doesn’t fall under our jurisdiction. Maybe we can regulate it through corporate laws, but not necessarily by securities laws.
I’m bothered by the lack of transparency in the ICO industry. I say to the investors – beware! It might be a bubble. And as for us, I say that what is legal now, might be illegal tomorrow.
ICOs are a part of a welcomed evolution in the funding industry. But it needs to be properly managed and regulated.”