For better regulation and monitoring the transactions of cryptocurrency, the central bank of Israel and several other government bodies are trying to gain data as much as possible which will serve as an input for the cryptocurrency world.
As per the opinion of Bank of Israel, a continuous tracking process needs to be implemented in the digital assets space which will enable the stakeholders to understand their effect concerning the financial stability as well as economic activity on the financial market. Further, the information gained from such stakeholders and any other associated parties will help in the creation of a proposal which ultimately will help to draft a regulation policy effectively.
As per the press statement: “The team would like to monitor developments in this area in Israel and abroad, and examine the issues concerning the application of the regulation to the various uses of the technology and their implications for economic activity, the financial markets, and financial stability. The team will gather data and information to create a knowledge base on the issue for regulators and the public, and to formulate recommendations regarding the desired regulatory policy.”
Risks associated with the cryptocurrency world
The major issues which make dealing with cryptocurrency more dangerous are the risks associated with such virtual assets on their usage and such risks have created terror in the minds of the inter-agency team which include the Bank of Israel, the Israel Tax Authority, the Ministry of Finance, Israel Securities Authority and the Capital Market Authority. They are seeking the public input for every transaction efficiently.
The inter-agency team also include the Israel Money Laundering and Terror Financing Prohibition Authority and the Ministry of Justice as members, who want to know the exact process of blockchain technology and cryptocurrencies while dealing with complex issues that may emerge due to money laundering and financing of terrorism.
The inter-agency team is also concerned with the associated obstacles the companies face while dealing with initial coin offerings in Israel in their mission to raise funds in the Middle Eastern country: It quoted “What are the main barriers, regulatory or otherwise, with which Israeli parties at interest operating in the context of investing and fundraising in the area of virtual assets must deal if they wish to operate in Israel? If the company has previous experience raising funds in Israel, we would like to know what specific barriers it has encountered.”
Further, the role of the inter-agency team is not just restricted to the regulatory field only; they are also concerned with the distributed ledger technology and cryptocurrencies which will be advantageous to other areas of the economy. But for such a successful process, they need public data at every step which will help them in the financial industry and various other related industry.