ICO Oversight? Israeli Regulators Form Token Sale Study Committee

Israeli regulators are studying whether to apply the country's existing securities laws to the initial coin offering (ICO) model.

AccessTimeIconAug 30, 2017 at 7:00 p.m. UTC
Updated Sep 13, 2021 at 6:52 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Regulators in Israel have formed a new committee to study the applicability of domestic securities laws to initial coin offerings (ICOs).

, the development sees the Israeli Securities Authority panel putting together recommendations for potentially regulating ICOs. A report containing those recommendations sometime before the end of December. Officials working on the committee will also look into the approaches taken by other regulators worldwide, as well as the "the enforceability of securities laws in this area," among other subjects.

With the move, Israel's securities watchdog becomes the latest regulator of its kind to wade into the murky question of regulating ICOs.

Just last week, regulators in Canada released a staff noticing outlining how that, under its view, some blockchain-based tokens count as securities. At the same time, the Canada Securities Administrators (CSA) struck a proactive note and encouraged companies planning an ICO to reach out to the body.

Other regulators, including those in Singapore and the US, have also revealed their plans for regulating ICOs. Like Canada, their general stance is that while some token sales qualify as securities offerings, others – particularly tokens that have some kind of independent utility – do not.

It's a noteworthy development as well given that the country plays home to several startups that have pursued or are planning to raise funds through the model. Perhaps most notable among those is Bancor, which raised more than $150 million through a token sale in June.

To date, nearly $2 billion has been raised through ICOs, according to data from CoinDesk's ICO Tracker.

Hat tip: Udi Wertheimer

Israel flag image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.