Israeli Regulators needs a Stock Market ban on Companies that are Based on Cryptocurrencies

2728 Total Views

Latest Bitcoin Regulations

Israel‘s markets regulator will now propose a ban on companies which are based on the bitcoin and other cryptocurrencies from trading on the Tel Aviv Stock Exchange.

Shmuel Hauser, the chairman of the Isreal Securities Authority, said in the Calcalist business conference that, he will bring the proposal to the ISA board next week. If it is approved, it would be subject to a public hearing and then the stock exchange bylaws would need to be changed.

Hauser said:

“If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended.”

Hauser did not mention any companies that would be affected by his ban, but at least two firms listed on the Tel Aviv Stock Exchange.

Earlier this month, Hauser said bitcoin-based companies would not be included in stock exchange indexes.

On Dec.19 the Tel Aviv exchange, Fantasy Networks answered those remarks, saying:

“These restrictions … could harm investment in the company and even exclude it from trade on the stock exchange.”

Hauser said:

“We feel that the prices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty. There is an importance to signal to the market where things are … Investors should know where we stand.”

The recommendation to block digital currency companies from the stock exchange may move to Hauser, who is going to step down next month after 6.5 years as ISA chief.