Cryptocurrency trading platforms are the pillars of the industry. Governments have been working to introduce regulations that will see the platforms submit yearly reports of all transactions to the financial regulators. Israel financial regulator in a recent report stated that the country fully supports the development of a heavily regulated cryptocurrency issuance platform.
Heavily Regulated Cryptocurrency Trading Platform
In the report featured on Reuters, the platform should be able to allow companies to raise funds for their operations by issuing digital tokens to investors. To most people, this kind of arrangement sounds like the conventional securities offering and you are right about that.
Another recommendation made by Israel Securities Authority, ISA, is the creation of a specialist platform. ISA is of the idea that the existing securities laws that govern digital assets such as cryptocurrencies and security tokens should be applied.
However, ISA is yet to reveal the specific time or year that such a heavily regulated cryptocurrency trading platform will be launched. It is also important to note that a majority of users who value their privacy would be hesitant to use such a platform unless assurances about their data are made.
Considering the current status of Israel cryptocurrency industry, there is a high chance that the country will not follow through with this recommendation. It is likely that the global precedent will be set especially in the context of security token offerings.
At the time of writing, other developed countries are keen on creating a similar platform but they are looking at each other before making the first move. The results achieved by the first platform will most likely either encourage or discourage the rest to follow suit.
Thai National Legislative Assembly already gave the country’s Securities and Exchange Commission the green light to allow companies that are based in Thailand and licensed to issue tokenized securities to their clients and investors. In Liechtenstein, accredited businesses can freely offer securities tokens.
It is not yet clear whether this new development will promote global adoption of blockchain technology and networks in STOs. A significant number of countries are waiting for the United States SEC to announce its stand on this matter before proceeding. Get more crypto news here.