Despite the setbacks in the cryptocurrency industry, multiple governments have been embracing assets like Bitcoin, Ethereum, and others. However, Israel disappointed the community by intending to classify digital assets as securities. Amidst this, the Tel Aviv Stock Exchange [TASE] pitched a structure that would include crypto trading activities.
TASE plans to serve unbanked members through this initiative. If the plan is approved, non-banking members will serve as authorized suppliers of crypto trading and custody services. The “omnibus account” will serve as a middleman for any digital asset trading transactions involving customer funds.
According to TASE, the planned structure will allow clients to deposit fiat money intended for investments in digital assets. Clients will also be permitted to withdraw funds from the sale of crypto assets.
Currently, the draft proposal for this expansion has been made available to the public. TASE is seeking public comments about the same. The proposal will be sent to the TASE Board of Directors for approval once opinions are in, but no deadline has been given. Elaborating on its latest move, TASE said,
“This is another step in the advancement and development of the Israeli capital market that aims to encourage innovation and competition while mitigating the risks and protecting the customers.”
If this plan garners a green light, crypto assets like Bitcoin and Ethereum are expected to be the first to be a part of this initiative.
Will this crypto-friendly move garner a green signal?
As mentioned earlier, in January, the Israeli Securities Authority [ISA] put forth a plan that would put crypto assets under the definition of securities. As digital asset firms have been fighting to brush off the ‘securities’ association, Israeli regulators were “killing the industry.”
But TASE seemed confident about its latest proposal. The exchange wrote,
“TASE believes that the alignment of local regulation with international regulation will attract more foreign investments and foreign investors into the Israeli market.”