Israeli Government Announces New ICO Scrutiny
The Israeli government has recently announced, through the Israeli Securities Authority panel, that it will begin scrutinizing ICOs more carefully, and potentially regulating them.
The Securities Authority head, Prof. Shmuel Hauser, has announced the formation of a committee to evaluate whether ICOs fall within the definition of a security as established by the Israeli government.
Further, the committee has been tasked with making an analysis of cryptocurrency regulations in other countries in order to evaluate the legitimacy of Bitcoin. The committee’s mandate is to create new regulatory policies which encourage alternative funding channels and technological innovation while at the same time protecting investors from unsupervised investments.
Udi Wertheimer, a digital wallet employee, pointed out the substantial policy shift via Twitter:
The Israeli announcement brings additional threats of government control in Israel, where many ICOs have been started. The announcement comes after similar scrutiny was announced by the SEC in response to the DAO token sale.