The Ministry of Finance’s Chief Economist, Shira Greenberg, submitted a report to the Minister of Finance on the topic of digital assets, along with recommendations for the field’s regulation in Israel.
The recommendations concern digital asset regulation and call for the establishment of new regulatory infrastructure, as well as legislative powers over the issuance of backed digital assets, such as stablecoins and the provision of financial services through them.
She advocated for a more comprehensive regulatory framework that would align trading platforms and cryptocurrency issuers while also expanding the powers granted to the country’s financial regulators.
The recommendations also call for legislation to be passed that would transfer oversight of digital assets to the Bank of Israel and allow for the payment of taxes on crypto held abroad.
The proposal would establish an inter-ministerial committee to oversee decentralized autonomous organizations (DAOs) regulation.
Greenberg recommended in a 109-page report that Israel improves investor certainty and protection by imposing stricter licensing requirements on trading platforms and cryptocurrency issuers.
Greenberg also proposed giving the Supervisor of Financial Service Providers more authority to oversee licensing rules and to create a more comprehensive taxation framework for the purchase and sale of digital assets.
Minister of Finance, Avigdor Lieberman said, “The field of digital assets, which may become an integral part of the financial and economic system, is still characterized by high risks and uncertainties for both consumers and the system as a whole. All of these require an informed policy by the government.”
According to the officially released document, the recommendations were developed with the emerging regulation policy regarding digital assets in other developed countries in mind, particularly the EU’s Markets in Crypto-Assets Regulation (MiCA).
Shira Greenberg said, “The regulation processes are being formulated and determined during this period in various countries in the Western world and it is recommended that the state of Israel will act in accordance with the emerging standards in the developed world.