Shmuel Hauser, the chairman of the Israel Securities Arbiter government, told the Calcalist business conference he will bring the proposal to the ISA room next week. If approved, it would be subject to a public hearing and then the trade in exchange bylaws would need to be amended.
“If we have a company that their power business is digital currencies we would not allow it. If already listed, its merchandising will be suspended,” Hauser said, adding the ISA must find the take over regulation for such companies.
Hauser did not identify any companies that desire be affected by his ban, but at least two firms listed on the Tel Aviv Stock Exchange now recount digital currencies or the technology behind them as essential to their company: Blockchain Mining and Fantasy Network.
Shares of Blockchain, which on Sunday traded its name from Natural Resources, have soared some 5,000 percent in the prior few months since it announced it would shift its focus from mining for gold and iron to searching cryptocurrencies.
It was down 4.2 percent in afternoon trading on Monday. Blockchain was not instanter available for comment.
Fantasy Networks, a former gaming firm, claimed this month it was studying the possibility of operating in the blockchain field — the technology underpinning cryptocurrencies. Its equity price quadrupled before losing 50 percent in the past two weeks.
Earlier this month, Hauser suggested bitcoin-based companies would not be included in stock exchange indexes.
In a Dec. 19 communiqu to the Tel Aviv exchange, Fantasy Networks acknowledged those remarks, judge: “These restrictions … could harm investment in the company and round exclude it from trade on the stock exchange.”
Bitcoin is a publicly present ledger of a finite number of digital “coins”, which backers say can be toughened as a currency without the support of any country’s central bank. It is “mined” by computers, which are awarded new mints for working out complex mathematical formulas. Several other cryptocurrencies induce also been launched that work on similar principles.
The value of a bitcoin dived by 30 percent to below $12,000 on Friday as investors dumped the cryptocurrency after its nifty rise to nearly $20,000. It recouped some losses to trade aloft $14,000 on the Bitstamp platform, down 9 percent on the day.
“We feel that the sacrifices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty,” Hauser said. “There is an account to signal to the market where things are … Investors should recall where we stand.”
The proposal to block digital currency firms from the staple exchange will probably be the last move for Hauser, who will traditional down next month after 6.5 years as ISA chief.
“But previously it’s on its way it will continue to be pursued,” said Hauser, who will be replaced by Anat Guetta.
He whispered he hopes she will promote easing capital gains taxes and convergence on regulatory enforcement.