Bitcoin Suffers Major Setback in Israel

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Bitcoin has just received a major blow. The Israeli Securities Regulatory Commission announced that it wants to ban the trade of Bitcoin and other cryptocurrencies in Israel as long as transactions involving these currencies are unregulated.

The director of this Authority, Shmouel Hauser, said Monday that this proposal will be discussed next week at a meeting with the regulators of the stock market.

“As long as there is no regulation, we will ensure that companies trading primarily in virtual currencies will not be able to trade in the Tel Aviv stock market,” he said. He also warned that “the activities of existing companies whose core business is based on bitcoin will be suspended.”

“We will continue this policy until we find an appropriate regulatory framework for these transactions,” Hauser added.

He further explained that this decision is intended to protect the public in this area.

Bitcoin, the virtual currency that burst onto the international financial scene in 2017, has risen from around $ 1,000 in January to over $ 16,000 in mid-December, a dizzying ascent of a apparent bubble, even in business circles.

“I think the price of bitcoin is a bubble and no one knows what’s behind it,” Hauser added.

Vice President of the European Commission Valdis Dombrovskis last Wednesday urged European regulators to urgently modernize financial rules to deal with the volatility of bitcoin.

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Janet Yellen, the president of the Federal Reserve, said that bitcoin “is not an official currency” and urges financial institutions to ensure that their bitcoin transactions do not violate the laws on money laundering.

Eric Thomas

Eric, originally from Nigeria, currently resides in Florida and covers a wide range of topics for The talking Democrat.