The Bank of Israel has issued a formal request on its website pertaining to information on decentralized ledger technologies (DLT).
The request is not from the Bank of Israel alone but includes other financial entities such as Security Authority, Tax Authority and the Ministry of Finance and Justice. Other regulatory bodies such as Money Laundering and Terror Financing Prohibition Authority are also included in the list.
The ‘Regulatory Coordination of Virtual Assets’ document seeks information on DLTs since “the regulators of the Israeli financial system believe that there is room to renew and strengthen cooperation and coordination among all regulators and the public”.
The document clearly states it seeks information on hindrances faced by the local industry in the development of the technology. This includes companies directly using the technology, fundraising, dealing and trading of virtual assets.
The document also seeks out information on the risks involved in the usage of virtual assets and how that could be an opportunity for the finance industry to improve on. The document also inquires as to how the technology can be used to prevent money laundering and financing of terror-related activities.
The bank of Israel has already committed resources to the study of digital currencies, with a statement by the study group recommending that the adoption of cryptocurrencies at the state level will not have significant gains. The latest document requesting information shows a good sign from the government. A different perspective on the technology (from actual developers and users) just might give the government the right reason to adopt it.
Former Israeli Prime Minister Ehud Barak has also shown his distaste for cryptocurrencies, calling them Ponzi schemes and that “he would never invest” in such digital currencies.
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