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Proposed laws in Israel that would see cryptocurrencies classified as securities would cause huge damage to the local crypto industry, according to the chief of an current situation for cryptocurrencies is ‘quite complicated’ in Israel, and the current regulatory policies need to change. ISA previously regulated some crypto assets as securities, but in “You cannot classify all the digital assets as securities because it will kill the industry.” The ISA released a proposal in early January that would give the regulator sweeping new powers to According to Ilan Sterk, the CEO of Altshuler Shaham Horizon, an Israeli cryptocurrency service provider, the proposed rules will destroy the asset class. The Tel Aviv According to the CEO of an Israeli crypto service provider, proposed rules in Israel that would classify cryptocurrencies as securities would be devastating to the local crypto business. “You cannot classify all the digital assets as securities because it will kill the industry.” In early January, the ISA proposed broad new powers for the regulator to monitor

The future of cryptocurrency in Israel hangs in the balance. Proposed laws in Israel that would see cryptocurrencies classified as securities are causing major concern, with industry experts warning of devastating consequences. According to the CEO of an Israeli crypto service provider, the new rules could destroy the asset class and effectively "kill the industry."

Why Classifying Crypto as Securities Could Be Fatal to Israel\'s Crypto Industry

The concern stems from a proposal by the Israeli Securities Authority (ISA). The ISA released a proposal in early January that would give the regulator sweeping new powers to monitor the cryptocurrency space. According to Ilan Sterk, the CEO of Altshuler Shaham Horizon, an Israeli cryptocurrency service provider, the proposed rules will destroy the asset class. “You cannot classify all the digital assets as securities because it will kill the industry.” This sentiment is echoed throughout the local crypto community.

The current situation for cryptocurrencies is ‘quite complicated’ in Israel, and the current regulatory policies need to change. The Tel Aviv crypto scene, known for its innovation and entrepreneurial spirit, fears stifling regulations that would effectively classify most digital assets as securities. While the ISA previously regulated some crypto assets as securities, applying this blanket classification across the board is seen as an overreach that could stifle innovation and drive businesses abroad.

"You Cannot Classify All Digital Assets as Securities"

This core argument, "You cannot classify all the digital assets as securities because it will kill the industry," highlights the fundamental difference between traditional securities and cryptocurrencies. Many cryptocurrencies are designed to be decentralized and operate without a central authority, making them fundamentally different from stocks and bonds. Applying securities regulations to these assets would create significant compliance hurdles and potentially make it impossible for Israeli companies to operate competitively.

The potential impact of these proposed regulations on the Israeli crypto industry is significant. Many fear that companies will relocate to more crypto-friendly jurisdictions, taking jobs and investment with them. This would be a major blow to Israel\'s burgeoning tech sector and could undermine its position as a global leader in innovation.

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