The chairman of the Israel Securities Authority (ISA), Professor Schmuel Hauser, has recently outlined a number of the regulator’s concerns regarding cryptocurrencies and initial coin offerings (ICOs).
Also Read: Israeli Securities Authority Establish Committee to Consider ICO Regulations
“There’s a Difference Between Blockchain Technology in General, and Cryptocurrencies and ICOs”
Regarding cryptocurrency, professor Hauser expressed far more caution, stating that cryptocurrencies “are a totally different game. It smells like a bubble. Who says that bitcoin is worth $7000?!” The chairman added that he “want[s] to make sure that the world of [cryptocurrencies] is not a new mutation of the binary options industry.”
“We’re Going to Look at the ICO Industry on a Case by Case Basis, Not Ban It Altogether”
Professor Hauser stated that only ICOs determined to comprise securities will fall under the regulatory jurisdiction of the ISA. If an ICO is deemed to comprise a cryptocurrency “and not a security, it will not fall be regulated by the ISA. The chairman did, however, note the possibility that ICOs that do not issue securities may still be subject to regulation “through corporate laws.”
Mr. Hauser also emphasized his concerns with “the lack of transparency in the ICO industry,” stating that “ICOs are a part of a welcomed evolution in the funding industry. But it needs to be properly managed and regulated.”
In September, the ISA announced that it had established a new committee tasked with assessing the need for ICO regulations in Israel, and whether or not ICOs should be subject to securities regulations. The committee is expected to deliver its assessments by December 31st, however, Professor Hauser’s recent statements appear to indicate that the ISA has already come to several conclusions regarding the legal status of ICOs in Israel.
What do you think of the ISA’s chairman’s remarks pertaining to cryptocurrencies and ICOs? Share your thoughts in the comments section below!
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The post Israel Securities Authority Chairman Outlines Concerns Regarding ICOs appeared first on Bitcoin News.
via Samuel Haig
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