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Israel to Ban Bitcoin Firms From Stock Market

Israel to ban Bitcoin firms from Stock Market

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Israel to Ban Bitcoin Firms from Stock Market

 

When the gavel lands, even the best and most honest folks may have to cope with a rulebook built for criminals. If 2017 was the year of unimaginable crypto dream, then 2018 is going to be the year of regulations.

Across the globe, regulators have formed committees, subpoenaed documents and reviewed white papers. Going by similar trends, Israel to ban Bitcoin firms from stock market.

Mind you, in 2018 regulators will be marching armed with enforcement actions. Regulators will be rowing their guns on the darker tides of cryptocurrency, promises of ludicrous returns, ponzi schemes and other violations of securities laws.

Israel will be one of the few countries who have initiated action to tackle with the darker side of Cryptocurrency market.

Israel’s regulator has confirmed that they would propose regulation to ban Bitcoin companies from trading on the "Tel Aviv" stock exchange.

Shmuel Hauser, the chairman of the Israel Securities Authority (ISA), told the Calcalist Business Conference that he will bring the proposal to the ISA board next week.

If approved, it would be subject to a public hearing and then stock exchange bylaws (TASE laws) would need to be amended to legislate the ban on bitcoin companies.

In a public statement as reported by Reuters, Hauser said that,

“If we have a company that their main business is digital currencies, we would not allow it. If already listed, its trading will be suspended.”

Bitcoin Looks, Feels, Smells & Behaves Like a Bubble

 

Earlier this month, Hauser compared retail investors of bitcoin to the 19th century gold investors. He said, “Bitcoin looks like a Bubble, smells like a Bubble, behaves like a Bubble and feels like a Bubble.”

Now Hauser has doubled down on his stance, claiming that the prohibitory stance against bitcoin companies was to effectively discourage retail investors from adopting the decentralized cryptocurrency.

He stated that,

“We feel that the prices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty.”

Also, it is worthwhile to note that such stand from regulators in Israel is evident because Israel’s black market is around 22% of the country’s gross domestic product.

Following the footsteps of Russia and Dubai, Israel is considering offering a national cryptocurrency – a digital shekel – which would correspond in value to physical shekels. A digital currency registered with the government of Israel, would make black market transactions less possible.

As per news sources, an Israel based blockchain wallet application is in continuous discussions with Israeli government to make digital shekel reality.

The proposal to ban bitcoin firms from the stock exchange can be the last move for Hauser, who will complete his tenure as ISA chief. "But once it's on its way it will continue to be pursued," said Hauser, who will be replaced by Anat Guetta.

China had banned all cryptocurrency exchanges in the country, a few months ago. Also, South Korea had banned ICOs in the country. German regulators had also issued warnings for ICOs.

Japan on the contrary has taken totally different path, as they have made cryptos such as Bitcoin & Ethereum legal tenders in the country. And with the support of the government, many internet giants have started to expand their businesses into Crypto exchanges & mining