Earlier this week on Monday, February 27, the Tel Aviv Stock Exchange (TASE) published a draft seeking approval from regulators to facilitate crypto trading on its platform.

The license basically seeks the expansion of authorized activities of Non-Banking Members (NBMs) to include trading in digital assets. Last year, banking institutions like Bank Leumi already started offering crypto trading facilities in agreement with Paxos.

Now, other players too are seeking licenses that would allow them to trade digital assets. In its announcement, TASE proposed a structure that will allow customers to deposit fiat money designated specifically for crypto investments.

If regulators approve this proposal, non-banking members will act as licensed providers of crypto custodial and crypto trading services. All customer funds will be placed in an “omnibus account” that will serve as an intermediary for all crypto trading activities.

It would also allow clients to withdraw funds through the sale of crypto. However, this process remains a bit complex as of date. The announcement notes that this is specifically done to address consumer protection and mitigate risks.

Will Regulators In Israel Budge?

Israel has been one of the leading nations in terms of participation in cryptocurrencies. With global regulation in crypto kicking in, regulators in Israel are also making a move. Last November 2022, the chief economist of Israel’s Ministry of Finance published a report – “Regulation of the Digital Assets Sector – Roadmap to a Policy”.

This report seeks to impose regulations on financial activities and services in digital assets which will be similar to the ones currently applied to non-digital assets. The Tel Aviv Stock exchange is aware of the developments and hence taking action accordingly. In its press release, they note:

“The TASE staff prioritizes the regulation and advancement of the trading in Cryptocurrency as a means to upgrading the Israeli capital market in line with international standards, as well the ability of NBMs to expand their areas of activity and the ability of their customers to trade in Cryptocurrency”.

TASE believes that the alignment of local and global regulations will attract more foreign investments in Israel’s crypto market. It will ensure further advancement of Israel’s capital market while encouraging innovation and competition.

The post Israel’s Tel Aviv Stock Exchange Applies for Crypto Trading License appeared first on CoinGape.

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Filed under: News - @ March 1, 2023 4:28 am