Hauser: Need to Ensure that ICOs Are Not the New Binary Options

"ICOs are part of a welcomed evolution of the funding industry. But it needs to be properly managed and regulated."

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.

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“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.”

 

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