Just a day ago, regulators in Israel proved themselves to be very creative in achieving their crypto regulation goal. It appears that the Israeli Securities Authority (ISA) is now ready to exert its regulating arm this 2023. Shira Greenberg, Israel’s chief economist, submitted a 109-page report to the Minister of Finance at the end of November 2022. ISA saw the need for such regulation due to the growing number of investors who are already involved in digital assets. It was reported that over 150 companies are already operating in the space. Among the interesting amendment is the expansion of the definition of “securities” to include “digital assets.” The ISA came up with specific requirements for token issuers and will impose sanctions for non-compliance. Furthermore, part of the aim is to establish digital asset exchanges and to enable “the use of digital assets as collateral.”
The crypto regulation narrative is becoming louder as days pass by. Reading this article will give us an interesting overview of the evolution of crypto regulation in many parts of the world in 2022. Though the writer identified so many of these developments, I just want to highlight a selected few. This includes the following:
In the United States
The misdeeds of SBF were taken advantage of to revive the anti-crypto sentiment and reinforce the need for regulation. As usual, politicians are seen as heroes and protectors of investors’ interests. Never mind the negligence on their part and even the involvement of some of them with SBF’s wrongdoings.
In Central and South America
Despite the dominance of bearish sentiment surrounding bitcoin, President Bukele of El Salvador made a public announcement to buy one BTC per day. Moreover, late last year, Brazil had its version of its “friendly” stance on crypto by introducing a pro-crypto law.
In Asia
Among many countries in Asia, India had a very interesting position by imposing two new crypto tax policies, a 30% tax on crypto profits and a 1% tax deduction on every crypto transaction. This tells us the real color of regulators. They hate crypto, not because of its inclusive character but because they want to have their cuts on people’s every financial activity. Their laws deny their promises of poverty reduction and economic inclusion. These two are only good in words but very distant from the minds of these dictators.
In Europe and the Middle East
If there is any news related to crypto worthy of public attention, it is none other than how this digital currency helped the people of Ukraine in times of war:
The Russia-Ukraine war indirectly showcased cryptocurrency’s prowess in serving the unbanked. As millions lost access to their life savings, cryptocurrencies came into the forefront as a savior.
Conclusion
The regulation narrative is getting stronger and crypto regulation is now seen as the fastest way to mainstream crypto adoption.
My mind is divided about this recent regulation development. All I know is that I don’t want to see politicians interfering in the personal financial affairs of the people. However, it appears that such sentiment is just wishful thinking for the regulation narrative is so popular even among many advocates of blockchain and cryptocurrency.
Despite such an unfortunate development, I still wish every Hiver a peaceful and prosperous 2023!