Israel Securities Authority (ISA) Looks into Blockchain, Crypto & FinTech Initiative
An authorized press release has unveiled that the Israel Securities Authority (ISA) will be establishing a fintech innovation hub, as an effort to facilitate communication between fintech businesses and the authorities. In particular, the project aims to welcome new fintech businesses without any possible hindrances getting in the way.
Fintech is a sector that Israel is known for, as the industry alone amounts to billions in revenue on a yearly basis. The Chairwoman of ISA, Ana Guette is supposedly for such businesses and openly stated on behalf of ISA that the necessary measures will be taken to promote more opportunities.
However, she believes that making the necessary changes means doing so without negatively impacting the development made thus far. The press release has quoted Guette, who believes in the fintech sector along with supporting its people. She also spoke of the endeavor that is currently being worked upon.
This is what Guette had to share:
“The establishment of the Innovation Hub for the field of fintech is in line with the Authority’s vision to develop financial services for the investing public in Israel. A real revolution is taking place in many areas, which is changing the way consumer services are used by customers around the world.”
Guette also shared her take on what ISA wants out of the Innovation Hub, openly stating that “the Securities Authority (ISA) strives to lead innovation in general in the field of fintech […] out of an understanding of its contribution to the investing public, the resilience of the capital market, growth and the Israeli economy, with a vision of the future.”
Classification of Tokens and Coins
ISA’s most recent effort, excluding the Hub, involved the classification of Initial Coin Offerings (ICOs). As per existing data, ISA hired attorneys to assess cryptocurrencies and two particular methods, including both the American and Swiss approaches. While the former views tokens as securities, the latter has more than one category to distinguish one token from another.
As for the results, ISA believes that each individual token should be categorized based on its facets, as opposed to generalizing them altogether. In particular, tokens that were created to serve as nothing more than a currency should not be labelled as securities, only those who give out shares.
Overall, Guette’s current stance on fintech altogether is an improvement from the former chairman, as he held both a dubious and reserved perspective on cryptocurrencies and blockchain technology.