Central Bank of Israel Is Seeking the Opinion of the Public Regarding Digital Currency Regulation

The regulation of digital currencies has been an issue in the crypto space for quite some time. Cryptocurrency regulation and uncertainty in the industry has made many prominent investors to stay away. Since digital currencies are increasingly becoming popular, more government and regulatory agencies are coming into the crypto space.

Israel’s Central Banks Seeks Public Opinion about Crypto Regulation

Israel’s Central Bank, as well as other government agencies, are now seeking the opinion of the public regarding the regulations of digital currencies. In a statement, the bank said that is a need to track developments in the digital currency industry and know their implications on economic activity, financial stability, as well as the financial markets. According to the statement released by the bank, the opinion of stakeholders, as well as other interested parties, will really come in handy in creating recommendations that will be used to draft regulations. The banks said: “Their team would examine developments in this field in Israel and outside the country, and to monitor the issue regarding the application of regulations to the numerous uses of blockchain technology and their implications for financial stability, financial markets, and economic activity. The team will put together information and data to create a knowledge base on public and regulatory issues.”

Risks in the Digital Currency Space

The inter-agency team wants the opinion of the public regarding the risks associated with using digital currencies. The inter-agency team is comprised of the Israel Tax Authority, the Bank of Israel, Israel Securities Authority, the Capital Market Authority, and the Ministry of Finance. This is notable due to a report that was published last week. The report advised the Banks of Israel against issuing a digital Shekel as a result of the risks it poses on the financial system of the country. Another issue that the team is looking for the opinion of the public on include the barriers that digital currency companies are facing in Israel. The inter-agency also consists of the Ministry of Justice and the Israel Money and Terror Financing Prohibition Authority. The team also wants to find out how digital currencies and blockchain technology can be used to handle challenges that emanate when fighting financing of terrorism and money laundering. Furthermore, the team wants to know the type of obstacles that companies planning ICOs in Israel encounter when trying to raise fund in the Middle Eastern country. They are interested in knowing the experiences of firms that have tried to raise funds through Initial Coin Offerings in the past. Other than the aspect of regulation, the team sees digital currencies and DLT (distributed ledger technology) as a great benefit to other aspects of the economy. As a result of that, the inter-agency team is asking for the opinions of the public on the kinds of opportunities that these technologies offer to the financial sector as well as other industries. Bitcoin (BTC) Price Today – BTC / USD
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At the time of writing, Bitcoin (BTC) is trading at $4,057 after a decrease of about 2 percent over the past twenty-four hours. The digital currency currently has a market cap of $69.62 billion and its trading volume over the past twenty-four hours is $6.29 billion.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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