Commodity or stock? In every nation on earth, there is an ongoing discussion on how to categorize cryptocurrencies. The difficulty is knowing which rules to apply to this new class of assets that is causing a rapid upheaval in the economy. This is the central dispute in the ongoing case between Ripple and the Securities Exchange Commission.
But a query is raised: How could these cryptocurrencies, which are very new and vastly different from what we are accustomed to, fit into categories that have been in place for years? Financial or physical goods? What if the answer was neither? What if a brand-new box had to be made in order for the industry to advance and the technology to thrive?
The Israel Government Steps up to Regulate the Industry
One thing is for sure, that is not how the Israeli government hears it. A measure passed in early January by the Israel Securities Authority (ISA) poses a risk to the growth of businesses in the cryptocurrency industry in the nation. This only suggests that we think of cryptocurrencies as financial assets, similar to stocks.
The adoption of such a regulation, according to Ilan Sterk, CEO of the local exchange Altshuler Shaham Horizon, will result in irreparable harm to the region’s cryptocurrency industry. Ilan Sterk’s business is not a minor player in the nation. The exchange provides comparable services to Binance, such as keeping up the cryptocurrency and trading. It is one of the few participants having a Capital Market Authority license (CMA). This enables it to collaborate with local banks.
The Fate of Bitcoin (BTC) and Other Cryptocurrencies in the World
Worldwide, the authorities are working hard to retake control of the cryptocurrencies that they had previously disregarded or maybe undervalued. But taking rash action and going beyond might completely ruin the sector’s future in the nations where a legislation is in place.
For a field that is still developing and may not have reached even a third of its potential, it is only natural to have mistakes and technical difficulties, and this should be considered by the legislative tools. These harsh treatments could hinder and slow down the potential improvements in Bitcoin (BTC) and other cryptocurrencies throughout the world.
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