TASE Proposes Crypto Trading: Can It Meet Crypto Ecosystem Needs?
• The Tel Aviv Stock Exchange (TASE) proposed a regulation-friendly crypto trading system on Feb. 27.
• This system would involve authorized brokers, licensed crypto trading providers and licensed crypto custodians.
• However, some experts have voiced their doubts about the proposed system’s effectiveness for the Israeli crypto industry.
Proposed Crypto Trading System
The Tel Aviv Stock Exchange (TASE) recently announced that it has drafted a proposal for a new regulated crypto trading system in Israel. Non-banking members or NBMs of the TASE – such as UBS Securities Israel, Meitav Trade and Fair Financial Technologies – will be involved in this process by providing customers with fiat-to-crypto onramps and connecting them to licensed crypto trading providers and custodians. In order to use the service, customers must first deposit fiat money into their brokerage accounts which will then be deposited into an omnibus account at the chosen crypto exchange. When customers initiate buy orders, the cryptocurrency will be purchased from the exchange via this omnibus account and recorded in their brokerage accounts, while when sell orders are placed, coins are sold back to the exchange with funds sent back to the same omnibus account as fiat money.
Risk Mitigation and Consumer Protection
The TASE claims that this proposed framework is designed to mitigate risks for investors as well as enhance consumer protection in Israel’s nascent crypto industry. It hopes that its clear regulations will ensure that users have easier access to reliable services without worrying about fraud or mismanagement of funds while also exposing them to fewer risks than before.
The proposal has yet to pass through TASE’s board of directors but public comments regarding it are being taken into consideration before that happens. By allowing feedback from all stakeholders involved in this project – including investors, traders and services providers – it hopes to be able to tweak its regulations further if needed in order to make sure they properly serve its intended purpose of protecting consumers while still enabling them access quality services at lower costs than before.
Although some experts have expressed their doubts about how much impact this proposal would have on Israel’s current ecosystem, if approved by TASE’s board of directors it could very well open up many opportunities for local investors who are interested in getting started with cryptocurrencies but fear taking on too much risk due to lack of regulation or improper security measures implemented by existing exchanges or services providers within Israel itself.