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.

Aug 30, 2017 at 7:00 p.m. UTC
Updated Sep 13, 2021 at 6:52 a.m. UTC

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

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Bitcoin lucha por mantener el soporte en $27K-$30K

BTC está en una zona de soporte positiva, aunque el impulso a largo plazo sigue siendo débil.

BTC está en una zona de soporte positiva, aunque el impulso a largo plazo sigue siendo débil.

2
Diana Sinclair: People Aren’t 'Ready to Hear' About Inequities in the Metaverse

Web 3 can open up opportunities for marginalized groups, but it's not a silver bullet, says one leading NFT artist ahead of CoinDesk's Consensus festival.

Web 3 can open up opportunities for marginalized groups, but it's not a silver bullet, says one leading NFT artist ahead of CoinDesk's Consensus festival.

3
Biden Administration Wants Crypto Exchanges to Separate Customer and Corporate Funds

Federal officials saw Coinbase’s admission about customers’ vulnerability in a bankruptcy and will call for congressional action to segregate clients’ funds, source says.

Federal officials saw Coinbase’s admission about customers’ vulnerability in a bankruptcy and will call for congressional action to segregate clients’ funds, source says.

4
Crypto News Roundup for May 18, 2022

With bitcoin sliding back below $30,000 in sync with U.S. stocks, plus a look at the early fallout from the collapse of UST, CoinDesk’s Markets Daily is back with the latest news roundup.

With bitcoin sliding back below $30,000 in sync with U.S. stocks, plus a look at the early fallout from the collapse of UST, CoinDesk’s Markets Daily is back with the latest news roundup.