The Tel Aviv Stock Exchange (TASE) has recently proposed regulatory amendments that would allow some clients to trade crypto assets. This move comes at the backdrop of a growing number of regulated institutions getting involved in the digital asset market.
The proposed amendments would enable customers to deposit fiat money for investment in crypto assets and withdraw funds stemming from such investments. On their behalf, non-banking institutions (NBMs) will deal with two types of licensed companies: providers of trading services and providers of custodial services for cryptocurrencies.
The TASE has opened a public consultation period for the proposed amendments, and upon their receipt, the proposal will be submitted for approval by the Board of Directors. The exchange noted that 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.
The move by the TASE follows the Bank of Israel’s recommendations for regulating and supervising activities related to stablecoins in the country, as well as the Israel Securities Authority’s (ISA) draft proposal to define the legal status of cryptocurrencies.
The increasing involvement of regulated institutions in the crypto market, as well as the various regulatory initiatives in Israel, suggest that the country is gradually moving towards a more regulated crypto market. This could open up new opportunities for investors and businesses, while also providing greater protection for customers. It remains to be seen how the proposed amendments will be received by the public and whether they will be approved by the Board of Directors.