Israel to Exclude Crypto Companies from TASE

The Israel Securities Authority (ISA) has announced that it will bar crypto-related companies from the Tel Aviv Stock Exchange (TASE) indices. The move comes after the regulator proposed at the start of this year a change in the TASE rules regarding cryptocurrency companies.

As the ISA puts it, its decision has nothing to do with the ICO-related recommendations to be published soon. However, the regulatory committee has delivered a warning concerning cryptocurrency investments.

“Such investment incurs many exceptional risks, including an absence of liquidity and ability to convert the currencies to money, exceptional price volatility, illegal activity, and risk of fraud,” the warning says.

It goes on to add:

“An investor choosing to put his or her money, directly or indirectly, in a cryptocurrency investment instrument faces a high probability that one or more of these risks will materialize, resulting in the loss of his or her money.”

ISA chair Anat Guetta, who assumed the post in January 2018, said last week the regulator had decided to exclude crypto companies from the TASE to prevent the exposure of passive investors to such enterprises. She added that investments in these ventures involve much speculation, volatility, and a high level of risk.

The ISA plans to temporarily revise TASE rules to cut the access of companies that hold, invest in, or mine cryptocurrencies like Bitcoin, Ether, and others. The amendment will initially hold for one year, after which it will be reviewed again based on the future market developments.

Meni Rosenfeld, who chairs the Israel Bitcoin Association, reacted positively to ISA’s announcement, saying:

“There are indeed several risks in investing in digital currencies, and people should take them into account in order to make wise decisions. Investing in this sector is not suitable for everyone; it is only for those who understand both the potential and the risks.”

In January 2018, the Bank of Israel said it did not recognize Bitcoin and other virtual coins as a form of currency, qualifying them as an asset instead.

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