Israel’s securities regulator has asserted that cryptocurrency-related firms may not be listed on the Tel Aviv Stock Exchange (TASE) typography hands.
According to an announcement from the Israel Securities Authority (ISA) on Wednesday, the watchdog said it will-power bar the entry of public companies who mainly hold, invest in or mine cryptocurrencies from the index fingers, citing high volatility as a risk for passive investors whose portfolios alley the indices.
Crypto-asset firms can still be traded on the exchange itself, setting aside how.
The ISA said the the move comes after it had noted significant stock reward swing upon announcements of public companies’ involvement in cryptocurrencies.
The right said:
“In some cases, the companies’ reports (about cryptocurrency) led to a on the button rise in the share prices, even before they have genuine activities. The extreme volatility of trading in cryptocurrencies is also reflected in the custom in these companies, whose value rises and falls sharply, on for no apparent reason.”
As such, the ISA indicated that the new rule is intended to make safe that passive investors will not be exposed to these public institutions unless they actively choose to. The restriction will last for one year initially, responsible for to further examination at a later date.
The new policy also comes as a sequel of months-long consideration over possible measures to limit the effect of firms’ blockchain depends on public stocks and stock investors. The topic first emerged in December of at the rear year, when the authority’s chief proposed banning public fellowships on TASE from trading cryptocurrencies.
Elsewhere in the announcement, the ISA also eminent that an interim examination report on initial coin offerings (ICOs) is envisioned to be published in coming days, following the establishment of a committee last August to accommodate recommendations for oversight of token-based fundraising activities.
Through a separate notice the identical day, the ISA also warned the public on the risks of investing in ICOs, as they printing misleading or fraudulent promises of high investment returns. It further highlighted that ICOs “may be reflect oned as a public offering of securities,” which, the agency stated, must be logged with Israel’s Securities Law.
TA index image via Shutterstock
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