Tel Aviv Stock Exchange (TASE) has released a draft proposal for public comment that would allow non-banking members to trade cryptocurrencies. This move marks the first time TASE is considering enabling customers to deposit fiat currency for digital asset investments. If approved, non-banking members would act as licensed providers for cryptocurrency trading and custodial services.
Proposal Details
Under the proposal, customer funds would be placed in an “omnibus account” that acts as an intermediary for crypto trading activities. The plan also allows clients to withdraw funds from the sale of crypto, but the process would be complex, intended to enhance consumer protection and mitigate risks. The TASE believes that the move to attract more foreign investments into the Israeli market is a significant step towards the advancement and development of the Israeli capital market.
Also Read: Saudi Arabia Says Open to Trade in Other Currencies, a Sign of a Move Away From the Dollar
Possible Regulatory Hurdles
Although the proposal has been released, approval is not guaranteed, and the TASE board of directors must approve it. The Israeli Securities Authority (ISA) recently proposed a framework to regulate digital assets, placing them under the umbrella of securities. The proposed legislation is viewed by some experts as a potential threat to the crypto industry, and some believe it may “kill the industry.”
Despite regulatory challenges, the TASE board remains confident and believes that aligning local regulations with international regulations will attract more foreign investments and investors into the Israeli market. In September, Bits of Gold, an Israeli crypto exchange, became the first to receive a license from the Capital Markets Authority.
