Israeli Securities and Exchange Commission (ISA) director Shmuel Hauser has announced the formation of a committee charged with evaluating the Initial Coverage Bids (ICO’s) regulations. The group will be tasked to determine whether tokens’ sales and trade in crypto-actives are activities subject to Israel’s legal amendments.
Coin bids have become one of the most popular methods for new businesses to finance their projects. Following a series of very large ICOs that have taken place in recent months, interest among regulators around the world has increased dramatically. This is the case a few weeks ago the United States Securities and Exchange Commission (SEC) issued a warning against the display of currency bids, making it clear that these methods of financing are sometimes used to convince potential victims of that they invest their money in frauds.
In this way, the committee will be headed by the head of ISA’s Corporate Department, lawyer Moti Yamin, and the renowned economist Gitit Gur-Gershgoren. The group should present an analysis of the situation before December 31, 2017, explaining the results of the following functions:
- Assessment of the financial essence of ICOs and whether they overlap with other financial activities that are under the laws of Israel.
- To carry out a comparative analysis of the legal amendments for the regulation of the crypto currencies in several countries.
- Determine whether Crypto Currencies transactions and coin bids should be observed by the ISA.
- Design an effective balance between alternative financing channels and technological innovation, while protecting Israeli traders from unsupervised investments.
- Evaluate possible partnerships with local industry based in Blockchain and with regulators from other countries.
As stipulated by the ISA, over $ 1 billion through ICO’s was surplus collected in the first 6 months of 2017. In the words of the organization’s representatives, “Israel is considered a leading country in the development of Blockchain technology, with an industry that continues to grow. ” It should be noted that while the local currency offers have been successful, this was not due to the absence of incidents … to show a button, the ICO CoinDash project was hacked in June for more than $ 7 million dollars in Ethereum.
For its part, Stox, a prediction ecosystem based on the chain of blocks, raised more than $ 30 million in early August … the sale of currencies ended after surpassing the high point of 148.00 ETH, which is equivalent to about $ 33 million. However, as far as local successes are concerned, ICO de Bancor reached the figure of 396,619 ETH, which at the time was worth about $ 142 million.
Eduardo Gómez is a Venezuelan freelance writer and Information’s Technology Professional. He discovered Bitcoin in 2012 and has been drawn to it ever since. He also works as a Customer Support Agent at the San Francisco-based Bitcoin startup Purse.io