Israel may ban ICOManagement …
Israel may ban ICO
The Israel Securities Authority (ISA) may take a hostile stance towards Initial Coin Offering (ICO) campaigns and other related activities. Writes about this Finance Magnates.
ICOs are known as a convenient means of raising capital for startups, allowing them to avoid many formalities, but at the same time, various fraudulent schemes are often associated with this type of funding..
“In some ICOs, we saw signs of manipulation and fraud. Inexperienced investors and entrepreneurs who take part in such ICOs lose their money, “said the chairman of the board, Shmuel Hauser..
Hauser does not welcome such practices and suggests that the development of the ICO sphere can follow the path of the binary options industry..
Among the possible solutions to the problem, Hauser names a complete ban on ICOs in Israel. However, he notes that the regulator may not follow the path of China, where ICOs were recognized as an illegal method of financing in September this year. Instead, he can take advantage of the experience of Canada, where startups have the opportunity to conduct ICOs subject to strict adherence to the requirements of the regulator. In this case, only the most prepared companies will be allowed to conduct the ICO..
In addition, the upcoming amendments may also affect cryptocurrency exchanges, the requirements for identifying customers of which may be tightened, which will make this market segment closer to traditional markets..
Finance Magnates reports that Israeli Finance Minister Moshe Kahlon held a meeting with one of the largest ICO investors in Israel, Moshe Hogeg, during which the issue of further regulation of cryptocurrencies in the country was discussed. Hogeg has been appointed as an advisor to the ISA’s ad hoc committee, which must decide if there is a need for ICO regulation and if cryptographic tokens can be deemed valuable. The committee will present its decision in December this year.
Many large cryptocurrency startups, including Bancor, have their origins in Israel. The ICO ban is expected to slow down the development of this sector in the country.
We will remind that earlier Hauser said that from the cryptocurrency market “carries a bubble”.
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