Central bank of Israel may eye the approval of cryptocurrencies on a regulated basis

28 December 2017

Latest reports from Reuters indicate that the central bank of Israel may consider the decision to introduce cryptocurrency trading to boost the speed of payments nationwide. Reuters cited unnamed source from the bank, saying that Israel would like to minimize its reliance on cash and improve payment experience with the final decision still to be approved by the Bank of Israel.

If the project for introducing the use of digital assets in Israel is given a green light, the plan might be included into the nation’s budget as early as in 2019. The source noted that given the global trend observed at central banks considering the possibility of the cryptocurrency use, Israel does not want to stay on the sidelines.

The use of cryptocurrencies in Israel will likely be under centralized control with the anti-money laundering policies and regulations applied to the industry. Meantime, the Bank of Israel is abstaining from comments on the matter.

The move, however, may find tepid support on the part of the Tel Aviv Stock Exchange, to say the least, as Shmuel Hauser, a chairman of the exchange, expressed the ISA’s position on the cryptocurrency trading saying that it would propose the idea of delisting the companies dealing with Bitcoin and other cryptocurrencies to the board as early as next week. If the proposal is approved by the board, the hearing would follow to change the internal regulation of the exchange.

Hauser noted that if any company is found operating its business with main focus on cryptocurrencies, it would be debarred from the exchange with the listed companies facing suspension of their trading on the ISA, as there are concerns about volatility of digital assets leading to bubbles and uncertainty.

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