The Committee for the study and regulation of IPOs tokens (ICO) of the securities Commission of Israel (ISA) has released a series of «recommendations aimed at reducing uncertainty and achieving a balance between technological innovation and protection of investors.»
The recommendations clearly indicated whether such cryptocurrencies as bitcoin securities, which determines the approach to the future regulation of the industry.
«As a rule of cryptocurrency, which is intended for use solely as a means of payment, clearing or exchange and not restricted to a specific enterprise, that do not give additional rights and are not controlled by Central authority, will not be considered securities», — stated in the recommendations of the Committee of ISA.
Analysts believe that this could become a precedent decision, as the developed economies around the world are trying to solve for themselves the question about the classification of cryptocurrency.
«The question is whether the cryptocurrency security will be addressed when considering the totality of the circumstances and peculiarities of each specific case in accordance with the law», — stated in the message. «As a rule, cryptocurrencies will be considered as securities if they provide rights similar to those available in traditional securities, such as stocks, bonds and shares. On the contrary, the cryptocurrency that represent the right to the product or service and are acquired exclusively with a view to their use, and not for investment will not be considered securities.»
Regulators and the government of Israel has repeatedly stated their position in relation to cryptocurrency and ICO. Earlier this month, the ISA stated that Israel will rule the cryptocurrency of the company from the indices due to the high volatility and risk for passive investors who track these indices. In February, Israel’s Supreme court banned
the Bank to refuse service to cryptocurrency exchange, which can be seen as a major victory in the Israeli cryptocurrency industry.
In addition, the Israeli government confirmed that it will treat bitcoin and other crypto-currencies for tax purposes as property.