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Today, just over a month after the Bank of Israel has published a report by an inter-divisional team that evaluates the supply of digital money by central banks, the Bank of Israel has published an invitation to the public for information for the team for this purpose of coordination regulations of virtual goods.
In the report, published at the beginning of November, the team stated: "It is expected that there will be some material and technological difficulties and risks in the issuance of digital currencies of the central bank (CBDC), which mainly concern the potential impact on the financial system ". As reported in "Globes", the team has therefore recommended dealing with digital issues in the near future.
The announcement today reads: "Based on the regulatory activity conducted to date by all stakeholders in their fields of responsibility and authority in the field of virtual goods, and given the development of the industry in Israel, which is considering various uses and applications based, among other things, on DLP technology (distributed ledger technology), the regulatory community of the Israeli financial system, believes that cooperation and coordination between legislators and the public should be renewed and strengthened ".
The Bank of Israel adds: "The team wants to keep track of developments in this area in Israel and abroad and to assess issues related to the application of regulation to the various uses of technology and their consequences for the future. economic activity, financial markets, and financial stability: the team will collect data and information in order to create a knowledge base on the subject for regulators and the public and to make recommendations on the desirable regulatory policy ".
Seven main questions to be examined
For this reason, "Team members, which include representatives of the capital market, insurance and savings authorities, the Israel Securities Authority, the Ministry of Finance, the National Economic Council, the Israeli tax authorities, the Ministry of Justice, Israel Anti-Money Laundering and Terrorism Authorities, the National Directorate of Cyber and the Bank of Israel, ask comments to the public on the issues that should be addressed in considering the regulation of the use of virtual goods and possible measures related to these issues. "
Among the issues that the team wants to discuss, the announcement lists seven main questions. The first is: "What are the main regulatory and non-regulatory obstacles faced by interested Israeli parties dealing with virtual goods wishing to operate in Israel and offering their product to the local consumer? If a company has previously tried to operate in Israel, we want to know what specific obstacles he has encountered ".
The second question listed by the Bank of Israel was: "What are the main regulatory and non-regulatory barriers faced by interested Israeli parties trying to raise money through initial money offerings (ICOs) when they try to operate in Israel? to raise funds in Israel, we want to know what specific obstacles have been encountered by these stakeholders ".
A third question asks: "What are the main regulatory and non-regulatory barriers faced by consumers of virtual resource-based applications in Israel? What are the risks involved in the use and in the activities of virtual resources? should the regulatory authorities gather to monitor the development of the sector? What opportunities does this technology offer the financial sector? Finally, how can this technology help address the challenges of combating money laundering and terrorist financing ( AML / CFT)? "
"Daily difficulties in the use of currencies"
In response to the current appeal of the Bank of Israel, the president of the Israeli Bitcoin Association, Meni Rosenfeld, said: "Users of digital currencies in Israel face daily difficulties in carrying out transactions with their currencies, For example, if a person who has bitcoin wants to pay for a meal with the currency, the law states that he must report the transaction, and also pay taxes on the sale of the bitcoin he used in the purchase. The tax authority is liable to thousands of unnecessary reports or thousands of people who use technology could become villains criminals. "
Rosenfeld added: "The Bank of Israel measure is welcome and I hope that all the difficulties and barriers will be accommodated, so that digital currency holders can use them, especially at the individual user level".
As the year draws to a close, it can be said with virtual certainty that bitcoin will end the year with its first annual decline since 2014, after gaining ground in each of the previous three years. As reported in "Globes", Monday was the anniversary of the date when bitcoin, the leading digital currency, broke its all-time record with a price of just over $ 20,000. In the following 12 months, bitcoin decline was prolonged and painful. Its current price is now $ 3,590, after a 4% jump in one day.
Published by Globes, Israeli economic news – it.globes.co.il – December 19, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018
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