Israel Securities Authority to Set Up Fintech Hub
- The regulator wants to be able to adjust laws without causing unnecessary obstacles to development.
The Israel Securities Authority is going to set up a Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term innovation hub, according to an official press release. The aim of the initiative is to create a connection between the authorities and businesses involved in this field.
Hundreds of businesses
Israel alone now counts hundreds of businesses working in this field, and the market is worth tens of billions of dollars a year. Given this, ISA Chairwoman Anat Guetta said that the ISA understands the importance of expanding the authorities' understanding of the field.
The regulator wants to be able to adjust laws without causing unnecessary obstacles to development. To this end, fintech businesses are encouraged to adapt their activities to the law - they will receive support from the ISA to achieve this.
Commenting on the press release, Guetta said: "The establishment of the Innovation Hub for the field of fintech is in line with the Authority's vision to develop financial services for the investing public in Israel. A real revolution is taking place in many areas, which is changing the way consumer services are used by customers around the world. The Securities Authority strives to lead innovation in general and in the field of fintech in particular, out of an understanding of its contribution to the investing public, the resilience of the capital market, growth and the Israeli economy, with a vision of the future."
Tokens are securities, coins are not
Earlier this year, the ISA set up a committee of lawyers and consultants to examine the possibility of a sandbox for ICOs. It focused on two different models - the American approach, which treats tokens as securities, and the Swiss model, which recognises that tokens can fall into three different categories.
The ISA released the conclusions reached by the committee in March. In its report, it suggested legal definitions of tokens. It decided that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term that are designed to be used solely as currency should not be considered securities, but cryptocurrencies which grant rights similar to shares should take on this definition.
The agency thus differentiated between coin and token. It further said that each cryptocurrency should be judged on its individual characteristics.
The examination was seen as a positive development because the previous chairman of the ISA, Shmuel Hauser, had been relatively suspicious of the industry. His attitude was a result of his experience with the binary options industry.
The Israel Securities Authority is going to set up a Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term innovation hub, according to an official press release. The aim of the initiative is to create a connection between the authorities and businesses involved in this field.
Hundreds of businesses
Israel alone now counts hundreds of businesses working in this field, and the market is worth tens of billions of dollars a year. Given this, ISA Chairwoman Anat Guetta said that the ISA understands the importance of expanding the authorities' understanding of the field.
The regulator wants to be able to adjust laws without causing unnecessary obstacles to development. To this end, fintech businesses are encouraged to adapt their activities to the law - they will receive support from the ISA to achieve this.
Commenting on the press release, Guetta said: "The establishment of the Innovation Hub for the field of fintech is in line with the Authority's vision to develop financial services for the investing public in Israel. A real revolution is taking place in many areas, which is changing the way consumer services are used by customers around the world. The Securities Authority strives to lead innovation in general and in the field of fintech in particular, out of an understanding of its contribution to the investing public, the resilience of the capital market, growth and the Israeli economy, with a vision of the future."
Tokens are securities, coins are not
Earlier this year, the ISA set up a committee of lawyers and consultants to examine the possibility of a sandbox for ICOs. It focused on two different models - the American approach, which treats tokens as securities, and the Swiss model, which recognises that tokens can fall into three different categories.
The ISA released the conclusions reached by the committee in March. In its report, it suggested legal definitions of tokens. It decided that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term that are designed to be used solely as currency should not be considered securities, but cryptocurrencies which grant rights similar to shares should take on this definition.
The agency thus differentiated between coin and token. It further said that each cryptocurrency should be judged on its individual characteristics.
The examination was seen as a positive development because the previous chairman of the ISA, Shmuel Hauser, had been relatively suspicious of the industry. His attitude was a result of his experience with the binary options industry.