The Tel-Aviv Stock Exchange (TASE) aims to allow crypto trading for customers of its Non-Banking Members (NBMs).
TASE releases a draft for public feedback to gain approval for the extension of the crypto trading activities of the NBMs.
According to the announcement, TASE places a high priority on the regulation and development of crypto trading as a way to advance the Israeli capital market and bring it up to par with international standards, as well as the capacity of NBMs to broaden their spheres of operation and the capacity of their clients to trade in crypto.
The new system will allow the Israelian user to deposit fiat funds intended for crypto investments and withdraw funds coming from those currencies in the following ways.
A licensed provider of crypto trading services will be contacted by the NBM, as well as a licensed provider of custodial services for such currencies. The user will deposit funds in traditional currency into their account with the NBM to buy the crypto.
When the customer places a crypto purchase order, it will be carried out using the funds put in the omnibus account and will be reflected in the customer’s account with the NBM.
When a user requests to sell crypto, the trading service provider sells the coins and credits the NBM’s omnibus account with the proceeds in the form of fiat. The proceeds are then transferred to the customer’s account with the NBM.
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The proposal will be presented to the TASE Board of Directors for approval after receiving public feedback. This comes at a time when the cryptocurrency market has experienced turmoils over the last year.
The Israeli public will be allowed to invest locally through regulated institutions, according to TASE, if local regulations are brought into line with global regulations.
“This move will facilitate the development and advancement of the Israeli capital market and encourage innovation and competition, while addressing the risks that are inherent in this activity,” the announcement notes.
Also Read: Israel Receives Recommendations on Regulating Digital Assets
