Israel Securities Authority Is Looking To Private DLT Exchanges To Model Its Regulations

Israel’s securities regulator is calling on private sector players to submit proof-of-concept for Distributed ledger technology (DLT) backed virtual assets trading platforms.

According to CoinDesk, Israel Securities Authority (ISA) held a conference on Jan 20 in Tel Aviv where it announced that it was set to provide a full virtual value chain meant for investors which will comprise of virtual assets which are held, traded as well as settled through DLT. in connection to this, the agency is now calling for the players in the industry to submit their pitch that must have proof-of-concept.

The regulator stated that after the completion of this stage, it will come up with requisite regulation which will make it easy for the launching of digital platforms in the country’s capital market.

As per the conference notes, DLT presents not just a capital markets evolution, but it has become a necessity and Israel and the securities regulators should work towards creating an enabling environment. Majority of the people who presented their views during the conference stated that fresh and low-cost DLT-based platform have the potential of opening up extra financial opportunities for new entrants in the market. The regulator also indicates that Israel can be an example to other securities regulators around the world.

The endorsement of DLT by the authority comes a few days after a committee that was created to analyze the technology for half a year, taking into account all the technology aspects ranging from issuance of tokens to smart contracts. According to the committee’s report, DLT can transform the country’s capital market and can propel the market as the center of global technology. The committee also found that DLT could be a solution for faster settlements and can help to streamline clearance.

The committee also states that DLT in capital markets has an advantage especially in IPOs, clearance and trading. They also found that DLT will help in lowering associated costs. The technology can help in spurring innovation in the market and open up the market to many players as well.

ISA uses DLT through its messaging platform ‘Yael’.

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Author: Joseph Kibe

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