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).
“There’s a Difference Between Blockchain Technology in General, and Cryptocurrencies and ICOs”
Professor Hauser opened his address by seeking to demarcate between the blockchain and cryptocurrency industries. The ISA chairman stated that “blockchain technology is here to stay and will enter every aspect of our lives,” suggesting the ISA’s expectation that distributed ledger technology will become embedded in existing financial processes.
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”
The chairman emphasized that the ISA will assess the regulatory requirements and legal obligations of initial coin offerings based upon the particularities of each ICO, and that the ISA will not seek to implement an outright ban on the nascent industry.
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 Read More Here