Regulatory Confusion Leaves Crypto Industry With A Unclear Future In Israel
After the delay of regulation, Moshe Pearl, the chairman of the Association of Banks in Israel, sent a letter to Dr Hedva Bar, the supervisor of banks. Pearl composes that “the binding position” of the Banking Supervision Department has “not yet been unmistakably communicated” and “not yet been clearly expressed” and “the banking system is exposed on several fronts, and this is not a situation that can and should be accepted.”
In last seven day stretch of May Moshe Kahlon, Israel’s finance minister had published a draft on the prohibition on money laundering that would apply to financial services providers that work in digital currencies. This law was considered by numerous as a day break for digital currency regulation and was assumed as an entry point for institutional banks to enter the digital currency market. In any case, now the postponement in the digital currency regulation, that was to come as a result from June 1, has left the business hanging in the middle.
In a non-related development, the Tel Aviv Stock Exchange (TASE), Accenture and innovation centre The Floor reported toward the beginning of May that, they wanted to uncover another blockchain securities lending platform powered by Intel.
This unmistakably shows a gap between the regulators as each one, the Ministry of Finance, The Banking Association and Tel Aviv Stock Exchange, are moving in their own direction.