Today, the ICO Review and Regulatory Committee submitted its interim report to Israel Securities Commission (ISA) Chairman Anat Guetta. “The report contains a number of recommendations aimed at strengthening stability and maintaining a balance between technological innovation and investor safety,” say commission representatives.
The committee provided these recommendations after six months of work on them. The commission staff also added: “The main tasks of the committee, headed by ISA chief economist Dr. Gitit Gur-Gershgoren and renowned lawyer Moti Gaven, were to study cryptocurrency-related businesses and prepare a regulatory plan of recommendations based on a comparative analysis of the laws of different countries.”
According to the interim report, the committee distinguishes between the concepts of “cryptocurrency,” which is used solely as a medium of exchange, and “token,” which they defined as “special a cryptocurrency that gives the right to ownership, participation or membership in a certain enterprise, or the right to a certain share of the profits from this enterprise in the future” and “a utility token” - “a token that provides the right to use a service or product provided by a certain enterprise.”
The committee report also stated the following: “Cryptocurrency should be considered a security, of course, it is worth considering many circumstances and characteristics for the purposes provided by law. Cryptocurrencies that provide rights similar to those that securities provide should be considered securities. Cryptocurrencies intended for payment or exchange in one specific enterprise that do not provide additional rights and are not properly controlled cannot be called securities. option to pay with cryptocurrency on crowdfunding platforms.”.
Securities Commission staff note that regulation of this complex and dynamically developing sector is still under development both in Israel and in other countries, so the results of the committee’s work will only be visible in the future. The situation on the crypto market is changing very quickly, and therefore the opinion of committee members may also change over time..
Guetta stated: "The relevance of regulators lies in their ability to strike a balance between technological progress and the oversight for which regulators are designed. The industry based on distributed ledger technology is an innovative industry that has the potential to change the financial world. Israel's unique qualities and global status in this area will, over time, result in our contributions in this area generating significant profits. The Israel Securities Commission will continue to study and monitor further developments sector.”
According to http://www.globes.co.il
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