Stock Exchange Indices In Israeli Will Not Include Virtual Currency Companies
In an attempt to decrease system risk, the Israel Securities Regulators have declared that firms operating in the virtual currency sector will not be included in the Israeli stock exchange indices. News of the resolution has been issued in conjunction with an official caution stating to enlighten potential speculators of the risks relating to virtual currency trading.
Israeli Virtual currency firms disallowed from listing on Stock Exchange Indices
Virtual Currency found in Israel have been declared banned from listing with the Stock Exchange indices according to an official statement issued by Israel’s financial authority known as the Israel Securities Authority.
Ms. Ana Gueta, ISA Chairperson, has declared based on a slight interpretation that they have concluded to evade audience to inert speculators for firms that are primary involve in virtual currency trading. In addition, she noted that investment in these firms involves high risk, speculative and volatile.
The ISA discloses that the resolution has been done in reply to the announcement made in recent months by the distinct trading in securities of companies on Tel Aviv Stock exchange that they wish to work in virtual graphic currency industry. The authority’s stress, which only with the declaration a firm might be discovering blockchain technology in some cases, which resulted in tremendous increase in share value, “even before they have true activity.”
Amendment to Stock Exchange law, ISA desires?
The ISA have noted that they will work to encourage a short-term amendment to Israel’s stock exchange regulation, including the restrictions of entry into indices of firms whose main activities include the mining, storing, distributing and investing of cryptographic currencies.
The aim of the amendment is further elaborated by Israel’s Financial authority, which is the restriction of public corporation conducting business in the risky and speculative virtual currency sector, from listing on stock exchange indices and being added to the group of inert speculators. The ISA expects to action this amendment “or a limited period of one year”, subsequently to proceed will be for the regulation to be re-assess in relation to the latest progress in the sector.
In addition to the above, if I had not intervened the ISA state worries that the mixture of digital graphics and stock index companies would have resulted to ETFs and mutual funds obtain shares in these firms, therefore incidentally revealing inert speculators to the possible great losses.
