Professors Schmuel Hauser, chairman of the Israel Securities Authority (ISA), has publicly outlined the regulatory agency’s many concerns pertaining to both cryptocurrencies as well as initial coin offerings (ICOs).
The chairman recently outlined these concerns during an address, where he stated that the ISA is currently trying to create clear distinctions between blockchains and cryptocurrencies. According to Hauser, the ISA believed that blockchain technology won't be replaced or forgotten anytime soon and that the technology is likely to become implemented in every aspect of day-to-day life. The professor implied that the ISA believes that blockchain technology will become more readily used in all financial processes in the future.
However, when it came to cryptocurrency, Hauser suggested caution. Much like other prominent financial leaders, such as JP Morgan CEO, Jamie Dimon, as well as Credit Suisse’s CEO, Tidjane Thiam, Hauser stated that cryptocurrency seemed to be like a bubble. The chairman stated that the ISA would first like to ascertain that cryptocurrency is more than merely a mutation of the binary options sector before embracing it.
In terms of regulatory policies, Hauser stated that the ISA intends to assess each industry's individual regulatory and legislative requirements and obligations before making a judgment in the matter. While the ISA does not intend to ban cryptocurrencies and ICOs, their approach would likely be a cautious one.
According to Hauser, those ICOs that are deemed as securities will be subject to ISA regulation. Once an ICO is considered to be a cryptocurrency, it will not be obliged to comply with ISA regulation. However, Hauser pointed out that even if ICOs did not intend to issue securities, there is still a possibility that they would remain subject to regulation, according to certain corporate laws.
In addition, Hauser noted concerns regarding a lack of transparency in ICOs. While Hauser acknowledged that ICOs were the dawn of a new and welcomed solution in the finance industry, he emphasized that the industry required thorough management and regulatory policies if it is to succeed in the future.
Earlier this year, the ISA formed a committee with the goal of determining whether ICOs warranted regulations within Israel. This committee is scheduled to deliver its verdict on the 31st of December 2017. While the verdict is still pending, Hauser’s latest address seems to hint that the ISA is likely to introduce regulatory policies for ICOs in the future.
The chairman recently outlined these concerns during an address, where he stated that the ISA is currently trying to create clear distinctions between blockchains and cryptocurrencies. According to Hauser, the ISA believed that blockchain technology won't be replaced or forgotten anytime soon and that the technology is likely to become implemented in every aspect of day-to-day life. The professor implied that the ISA believes that blockchain technology will become more readily used in all financial processes in the future.
However, when it came to cryptocurrency, Hauser suggested caution. Much like other prominent financial leaders, such as JP Morgan CEO, Jamie Dimon, as well as Credit Suisse’s CEO, Tidjane Thiam, Hauser stated that cryptocurrency seemed to be like a bubble. The chairman stated that the ISA would first like to ascertain that cryptocurrency is more than merely a mutation of the binary options sector before embracing it.
In terms of regulatory policies, Hauser stated that the ISA intends to assess each industry's individual regulatory and legislative requirements and obligations before making a judgment in the matter. While the ISA does not intend to ban cryptocurrencies and ICOs, their approach would likely be a cautious one.
According to Hauser, those ICOs that are deemed as securities will be subject to ISA regulation. Once an ICO is considered to be a cryptocurrency, it will not be obliged to comply with ISA regulation. However, Hauser pointed out that even if ICOs did not intend to issue securities, there is still a possibility that they would remain subject to regulation, according to certain corporate laws.
In addition, Hauser noted concerns regarding a lack of transparency in ICOs. While Hauser acknowledged that ICOs were the dawn of a new and welcomed solution in the finance industry, he emphasized that the industry required thorough management and regulatory policies if it is to succeed in the future.
Earlier this year, the ISA formed a committee with the goal of determining whether ICOs warranted regulations within Israel. This committee is scheduled to deliver its verdict on the 31st of December 2017. While the verdict is still pending, Hauser’s latest address seems to hint that the ISA is likely to introduce regulatory policies for ICOs in the future.