Israel’s security laws might be experiencing amendments where crypto and digital asset practices are concerned. The Israel Securities Authority (ISA) has proposed amendments that are open to public inputs until February 12th 2023.
The ISA-proposed changes are to the nation’s securities law of 1968, the 1994 Law on Joint Investments in Trust, and the practice of investment consulting law of 1995, which includes the laws of investment marketing and the law or investment portfolio management.
The following are the proposed amendments:
- the ISA wants a clear definition of “digital assets”. Currently these are not included in list of definition in the laws.
- the securities supervisor wishes that joint investments in cryptocurrencies falls directly under the protection of the Law on Joint Investments in Trust of 1994. Moreover, the regulator wants to have the power to make changes to any crypto-based joint investments.
- it also wishes to change the definition of securities within the consultation law of 1995
- a change in the way “foreign securities” are defined, so that outside offered securities are safer for Israeli users.
The ISA realistically admits that many regulations are not met, under different circumstances, with many crypto investments not following the national guidelines. Furthermore, crypto investments can be made in an unsupervised way, adding further complications, noted the ISA.
The regulator also commented that the nature of cryptos make them difficult to regulate, hindering past and future “protection mechanisms”
