The Israeli Securities Authority (ISA) looks set to embrace blockchain technology after recommending the promotion of a digital securities trading platform in Israel.
Reported by the Globes on Tuesday, the recommendations were made on an ISA draft report, which is scheduled to be published next week. The report was prepared following the work of the ISA-appointed committee to promote and institutionalize digital markets in Israel.
The committee is bullish on the application of the decade-old technology and believes that it has the “potential for advancement in the Israeli capital market.”
Commenting on the committee’s findings, Orly Koren, deputy director at ISA’s supervision department and head of the committee, told the publication: “The committee focused in its work on digital platforms for offerings, trading, and clearance of securities using distributed ledger technology [DLT].”
Did COVID-19 Save the Forex Industry?Go to article >>
Encouraging companies in the industry
Along with the publication of the report, the agency will also put out a call to the companies working in the industry for the establishment of a digital securities trading platform.
“We invite the public to raise regulatory issues concerning the promotion of markets using innovative technology, particularly issues that they believe are likely to constitute an obstacle to development of this sector in Israel,” the agency stated.
The study by the committee also took into consideration the regulatory challenges on the sector and recommended the ISA for a neutral approach. However, it also emphasized that the technology of the companies should meet some “required standards,” which include mandatory rules for anti-money laundering, protection of customers, and stability risks.
Tel Aviv is already a hotbed for technology companies, and now many blockchain companies are also spawning in the area. According to a survey by the Israeli Bitcoin Association, the number of blockchain companies in the country saw an annual surge of 32 percent by the end of 2019.
Meanwhile, an Israeli decentralized collateral management firm recently raised $2.5 million in a seed funding round, Finance Magnates reported.