Israeli Financial Regulators to Accelerate Blockchain and Fintech Licensing Process
The financial authority of Israel is seeking to speed up the licensing procedure for fintech and blockchain firms, those looking to receive business approval in the nation.
Calcalist, news outlet mentions that the Capital Market, Insurance and Savings Authority- a unit of the Ministry of Finance has formed a blockchain team to handle 2,000 business license applications.
As per reports, the regulator expects to promote local competition by permitting more fintech firms. Blockchain team ‘intends to prioritize blockchain and fintech applications.’
The financial authority also approached representatives of blockchain firms to assist them in identifying and removing important barriers.
The financial authority mentions that more companies would be allowed to obtain licenses across the country but they should quickly make small modifications to their business standard and technology.
As per the news outlet, Calcalist, the financial regulator has introduced a specific industry team, some of them specialize in blockchain firms.
Moshe Barkat joined the unit back in 2018 as the manager of the Authority, commented,
“Business and technological innovation and the relationship with the industry are the basic principles that guide the Authority in its operations. The Authority is engaged in the licensing and regulation of fintech companies regularly, including digital insurance companies, P2P platforms, and credit providers, digital wallets, Blockchain-based fintech ventures, and other payment services providers.”
Meanwhile, the financial authority is also examining its existing standards regarding fintech insurance.
Calcalist mentions crypto market of Israel is ‘small and high regulated’ and hence most startup firms have decided not to set up an office in Israel in-spite of earlier efforts to develop pro-business regulatory conditions.
Meanwhile, crypto investors in Israel have expressed their anger with leading banks. According to Globes report, Israel Bitcoin Association (IBA) – a non-profit community has filed a freedom of information plea in the district court of Jerusalem. The filing alleges that the central bank of Israel holds ‘commercial secrets’ of crypto policies. The non-profit community wants the Bank of Israel to reveal local banks crypto policies.
Another crypto trader also filed a suit against the Israel Bank Hapoalim, because they refused to deposit fund generated through digital currency investment.
The petitioner’s lawyer, Lior Lahav mentions banking issue is one of the main problems that is affecting more than thousands of crypto investors in Israel. He said over 70,000 crypto traders in the country are battling with similar problems from their local banks. 99 percent of crypto investors are normal people that have invested in a completely legal thing.
Haaretz – Israeli news outlet stated that crypto traders were experiencing difficulties in finding banks that could accept their business. Crypto investors informed the news outlet that commercial banks often declines to accept business from customers who say the fund they seek to deposit in the bank is generated from bitcoin or other altcoins trading.
The IBA mentions the policies of the bank are unclear or false. It expects banks to describe their policies officially. If any bank does not accept customer business, the bank concerning Israeli law should submit a document citing the reason for decline to the Bank of Israel.
The Calcalist mentions that the regulator has recently been associated with the Global Financial Innovation Network (GFIN).