The Israel Securities Authority (ISA) is working to create a new legal structure for digital assets that will bring them largely under the authority’s purview, which could provide greater clarity to the industry. According to the proposal, the amendments to the country’s laws would incorporate “digital assets” into existing securities regulations, potentially treating most crypto as financial investments supervised by the ISA. The assets would be defined as digital representations of value used for financial investment and transferable via a distributed ledger under the changes, and digital assets would be added to the existing category of “financial instruments” in Israeli securities law. According to the agency, this effort is intended to protect investors while also allowing for the unique benefits of cryptocurrency.
