Israel Aiming to Ban Cryptocurrency-Oriented Businesses From Stock Market

Israel Aiming to Ban Cryptocurrency-Oriented Businesses From Stock Market. The Tel Aviv Stock Exchange may be limited in terms of some of the more modern businesses it can list. This comes as the exchange is aiming to ban companies that are based off of or focused around cryptocurrencies. These include some that might already be trading on the Israeli market but have to be adjusted for them to be traded.

The move comes from the market regulator in Israel. The ISA is expected to be voted upon in the near future with the intention of creating additional regulations for businesses that work with the currency. This is to help with managing the market and keeping it stable while reducing the possible risks that may develop within the field.

Any cryptocurrency-oriented businesses that are actively trading on Israel’s stock exchange would have their trading functions suspended. Other businesses that focus heavily on cryptocurrencies would be outlawed in the future to ensure that they do not participate in further trading functions.

Who Could Be Impacted?

There are currently two companies on the Tel Aviv Stock Exchange that might be heavily impacted by this new development. Fantasy Network and Blockchain Mining are both businesses that focus predominantly on cryptocurrency functions. There is a potential that those two could be booted from the stock exchange or at least have their trading actions stopped due to the recent concerns from the government over such stocks.

Blockchain Mining, which was formerly known as Natural Resources, had its stock rise by about 5,000 percent in recent time. This came after the company opted to shift from mining gold and other physical metals to mining cryptocurrencies.

Fantasy Networks had increased in value by four times but lost half of that value recently. The company is focusing on blockchain technologies instead of the gaming functions that it had been working with in recent time.

Changes in Value

The significant changes in the value of the bitcoin could be seen as a vital factor for why attitudes towards the cryptocurrency are changing. The Tel Aviv Stock Exchange argues that the uncertainty of investments like the bitcoin is harmful to the stock market. These are believed to cause bubbles that can only harm the overall transactions that take place.

Additional Efforts

There are also considerations over additional efforts being put into place by the stock exchange over how taxes may be handled. These include capital gains taxes that might influence how well people are to be charged for any financial activities they enter into. Additional enforcement of rules and regulations may also be in the works as the stock exchange continues to evolve and rules over how stocks are added may come about over time as further changes occur in the field.

Stock Exchange Change

The move to possibly drop cryptocurrency-oriented businesses comes as Israel Securities Authority chairman Shmuel Hauser is planning on stepping down from his position in the near future. He will be replaced in January by Anat Guetta. Hauser had been running the organization for a little more than six years.