In the wake of FTX’s bankruptcy, the crypto nations are trying to make new laws to regulate cryptocurrency. Recently Isreal lawmakers have been preparing a draft to bring changes to digital assets. The Israel ruling party wants to provide better protection for crypto investors and users by implementing rigid licensing requirements on trading platforms and transactions of cryptocurrencies.
Shira Greenberg, the chief economist of Israel, submitted a list of recommendations mainly focused on how to implement crypto asset laws and expand the powers given to financial regulators in Israel.
Shira added that if Financial institutions got more power, they could easily maintain licensing rules and develop a tough taxation framework for buying and selling crypto assets. The supervisor of financial service providers can act as a watchdog for trading crypto assets in the nation.
Israel’s chief economist suggested introducing a committee to regulate blockchain-based decentralized autonomous organizations (DA0s). She further explained the need to introduce regulations on stablecoin providers in Israel.
According to the survey, the total digital assets users in Israel are nearly 200000. About 4% are adults; this figure is nearly equal to the UK crypto users. In a recent crypto global adoption index report, Israel is 111th out of 146 countries. In Shira’s survey, a total of 21 million blockchain-based transactions are completed by Israeli residents within a year. As per the reports, only 2% of Israel recorded having a crypto wallet.
Recently Israeli local cryptocurrency exchange Bits of Gold became the first digital platform to receive a capital market license. In September, regulators released Israel’s first crypto license to Hybrid Bridge Holdings (HBH). “With the license and the Bank of Israel recent orders will be able to resolve most of the bank issues,” regulators stated.
US New Regulations On Crypto Currency
The White House is taking steps in crypto market to avoid a repeat of the FTX situation in the crypto market. The special panel was investigating the liquidity issues of FTX. The lawmakers of the United States are under pressure to draft clear and rigid laws that can protect future digital users from facing the difficulties that recently happened with FTX. Joe Biden told the administration that it was time to introduce cryptographic regulations in the country. He directed lawmakers to draft legislation to regulate cryptocurrency.
The Upcoming Crypto Regulations In The EU
For the last two years, the EU government has wanted to launch the Markets in Crypto Assets (MiCA) framework for the crypto industry. This framework will help to combat crypto fundraising schemes in EU nations. As a result, the organizations decided to develop a framework to assist EU nations in maintaining their top position in cryptocurrency payment.
The European Union is preparing a draft to regulate privacy coins in the states. Privacy coins are digital assets designed to protect the privacy of users’ IDs and transactions. The well-known privacy coins Monero, Zcash and Dash will be banned in EU nations. The EU financial institutions made the decision mainly to avoid the traceability of the users.