The Committee on assessment and ICO regulation of the securities Department of Israel said that cryptocurrencies, whose use is not limited to one enterprise may not be considered securities. It is reported Bitcoin.com.
The financial regulator noted that its recommendations are aimed at “reducing uncertainty and establishing a balance between technological innovation and protection of investors.”
“As a General rule, cryptocurrency is intended solely for use as a payment, clearing of funds or medium of exchange whose use is not limited to one enterprise that does not provide additional rights will not be considered securities”, — said representatives of the financial regulator.
The organization noted that the possibility of categorizing cryptocurrencies as securities to be determined in each individual case and in accordance with applicable law.
“As a General rule, the cryptocurrency, giving their holders the same rights as traditional securities such as stocks, bonds or shares are considered as securities. In contrast, the cryptocurrency that provides the right to use the product or service that is purchased solely for this purpose, but not for investment purposes will not be considered securities”, — stated in the report of the office.
Experts believe that the position of the Committee, especially will play an important role for the ICO start-UPS, as the Issuer of tokens, producing them for resale, will bear obligations under the securities act. However, the situation of decentralized cryptocurrency like bitcoin, which do not have a single Issuer, these decisions will not affect.
Recall that in late October of 2017 the Office of financial regulation and supervision in New Zealand officially equated the operation with digital currencies to operations with securities.