An Israeli start-up seeking to establish a digital stock exchange in the country based on digital ledger technology has received the first clear encouraging signal from the Israel Securities Market Authority.
In a request letter sent to the regulator on Sunday, Simetria requested ISA approval to use the electronic billboard as a first step in a roadmap for the eventual launch of digital exchange. The letter refers to the increasing integration of DLT technology into the global market infrastructures and the development of a regulatory framework to accommodate this innovation.
In the case of Israel, a securities memorandum published by the ISA in 2020 proposes a law that would facilitate the creation of smaller, innovative digital exchanges:
The Treasury Department wants to sell securities transactions on trading platforms that do not operate on the same scale as the Tel Aviv Stock Exchange and that have unique features or specific purposes, such as trading platforms designed for experienced investors (such as insurance companies, pension funds, and banking companies) or platforms that use new technologies (For example, blockchain technology). ”
Therefore, Simetria ISA was required in the letter to approve one of the products in the short term: a digital billboard, which would provide information on private companies raising capital in the primary market, as well as information on securities of private companies. . Offered for sale by owners (secondary market). Prospective sellers and buyers will be able to post the various buy and sell signals on the billboard.
ISA quickly approved Simetria’s request to use the billboard, according to a report published by Israeli newspaper The Globes on Wednesday. Simetria co-founder and CEO Ziv Keinan said the certification puts Israel on a par with the leading countries in innovating digital securities around the world:
“The ISA solution represents an important milestone in the creation of the Digital Stock Exchange in Israel. […] Private companies will soon be able to offer digital securities to international institutional investors on the Simetria technology platform so that they can increase capital and obtain liquidity.”
Oded Spearer, CEO of ISA, echoed the view of Ken, who himself said that “digital stock markets are no longer in the distant future, but here and now.”
In other recent legislative changes in Israel, many lawmakers have proposed amendments to the current tax legislation so that digital currencies such as Bitcoin (BTC) are not subject to capital gains tax, and instead are treated like fiat currencies. This proposal, if implemented, would significantly reduce the tax bills of Israeli crypto investors.