By George Ward
In a recent report, Israel’s chief economist, Shira Greenberg, outlined ways the country can regulate the crypto sector. Greenberg noted that this would help protect investors while increasing crypto adoption in the country.
On Monday, Shira Greenberg submitted a 109-page report to Israel’s Finance Ministry. The report asked the country’s policymakers to adopt a comprehensive crypto regulatory framework.
Also, Greenberg said this framework should expand the power of financial regulators in the country. According to her, the government must protect crypto investors by enacting strict licensing requirements for crypto issuers and trading platforms.
Additionally, the chief economist argued that the government must ensure that users’ digital assets are well managed. Meanwhile, Greenberg noted that the Supervisor of Financial Service Providers needs more powers to function.
Greenberg remarked that the agency needs more power to evaluate crypto licensing and develop a tax regulation for selling and buying digital assets. The chief economist recommended more jurisdiction for Israel’s Securities Authority (ISA).
According to the executive, the powers would help the agency determine if crypto falls under its securities laws. Furthermore, the ISA would be able to oversee the activities of payment service providers in the cryptocurrency sector.
Meanwhile, Greenberg also talked about legislation in her report. She opined that it is imperative for law agencies to implant supervision and licensing regulations for stablecoin issuers.
The economist also called for the formation of an inter-ministerial committee. The committee will help to regulate and examine blockchain-based DAOs.
Israel’s Finance Minister Praises Greenberg For Her Suggestions
Furthermore, Greenberg argued that lawmakers and policymakers should be technologically neutral when enforcing crypto-related rules. Avigdor Lieberman, the country’s Finance Minister, applauded the chief economist for her suggestions.
Lieberman added that the report was up-to-date and very comprehensive. Thus, He expects the country to take some points from her report when creating crypto regulations.
Meanwhile, Israel is among the tech-savvy nations worldwide. However, the country is lagging in crypto adoption compared to other regions.
A recent analysis by Chainalysis (an on-chain platform) ranks the country 111th out of 146 on a global cryptocurrency adoption index. Also, Greenberg referenced a study revealing that Israelis account for 0.04% of international crypto transactions.
Moreover, the report states that only 2% of Israeli residents use or own a crypto wallet. However, this number might increase soon with increased crypto adoption.