Shira Greenberg, Israel’s chief economist for the Ministry of Finance, outlined several recommendations for regulating digital assets amid the country’s cryptocurrency adoption plans.
The 109-page report urges lawmakers to develop a more comprehensive set of regulations to control cryptocurrency trading platforms via Tel Aviv’s financial watchdogs.
She said that the country should restrict licencing requirements for trading platforms and crypto issuers along with the safe management of digital assets and subsequent funds.
Expanded Powers across Crypto Industry
Greenberg also calls for expanding powers to regulate licencing rules and build a better framework for taxing, buying, and selling cryptocurrencies. It also recommends that the government determine if it should monitor digital assets and cryptocurrency payments under Israeli law.
She also urged licencing and supervision mandates for stablecoin-issuing firms and an interministerial committee for scrutinising decentralised autonomous organisations (DAOs) using the blockchain.
Despite this, she noted technological neutrality was crucial while imposing cryptocurrency regulations.
She also cited data that Israelis only comprised 0.04 percent of total global cryptocurrency transactions, or 21 million transactions, with 2 percent owning or using crypto digital wallets.
ISA Cautions Crypto Investors
The figures come after the Israel Securities Authority (ISA) cautioned investors on cryptocurrencies in a statement, stating such investments “carry heavy risks for investors, including a tangible risk of loss of the entire investment amount.”
It added: “The ISA urges investors who are considering putting their money in this field, either directly or indirectly, to read this warning carefully before making a decision.”
Reasons behind the statement included market risks such as low liquidity and market bubbles, operational risks involving fraud or trade manipulations, cybersecurity risks due to hacking and theft of passwords, and regulatory risks leading to “significant” restrictions for companies in the sector.
