While some claim that cryptocurrencies have been one of the most significant creations of man in the 21st century, some governments and financial institutions see digital cash as a considerable threat that could make them obsolete if not adequately handled. In a slew of events, Israel has revealed itself as the latest country to wage war against Bitcoin.
Israel Bans Crypto-Based Companies From The Stock Market
According to CNBC, Israel Securities Authority (ISA) is putting preparations in top gear to ban new crypto-based firms and suspend existing ones from trading on the Tel-Aviv stock exchange.
In an interview on Monday, with the Calcalist business conference, the chairman of the Israel Securities Authority, Shmuel Hauser stated that he would submit the proposal to ban crypto-based firms to the ISA board in the coming week.
If the proposal is approved, there will be further hearing on the matter before the stock exchange bylaws would be amended to incorporate the ban.
In Hauser’s words:”If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended.”
Although the official did not mention the names of companies that will be affected by this ban, two major firms could go down if the ISA approves the prohibition.
On December 24, 2017, an Israeli-based firm changed its name from Natural Resources to Blockchain Mining. The company’s share price has risen by almost 5,000 percent since it announced its change of business from gold and iron mining to more lucrative cryptocurrency mining.
Also, Fantasy Network has said it is seriously studying the Blockchain environment and could shift its operation to focus on Blockchain technology soon. However, the firm was not specific if it was going into mining precisely, yet the announcement was enough to quadruple its stock price listed on the Tel-Aviv Stock Exchange.
In December 2017, Fantasy Network told the Tel Aviv exchange that Hauser’s crypto ban could have adverse effects on the company.
The Bubbling Threat
The ISA Chairmen is of the opinion that bitcoin is a bubble, and as such, companies whose operations include bitcoin and cryptocurrencies are not worthy to be listed on the stock exchange.
Hauser continued by saying that, “We feel that prices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty. There is an importance to signal to the market where things are. Investors should know where we stand.”
Hauser’s proposal to ban Bitcoin firms will be his last significant activity as the chairman of the ISA. The official will step down as chairman of ISA in January 2018, and be replaced by Anat Guetta.
Much like the exchanges the digital currency took over, market participants can only speculate as to what the resultant effect the proposal would have on the Israeli and world cryptocurrency ecosystem.