Tel Aviv Stock Exchange (TASE) published a draft proposal that would allow non-banking members (NBMs) to let their users trade cryptocurrencies, according to a Monday press release. The move is part of the exchange’s efforts to meet growing crypto demand while reducing its apparent risks.
TASE’s Proposal Open for Public Comment
Israel’s stock exchange proposed expanding the authorized activities of NBMs to allow their users to trade cryptocurrencies. The draft proposal is now open for public comment, after which TASE plans to submit it for approval by its board of directors.
Currently, TASE’s non-banking member institutions can offer investment, consulting, and brokering services. However, these institutions are not allowed to accept deposits from the public under current rules.
Under the proposed structure, NBM customers can buy cryptocurrencies using fiat money. More specifically, users will deposit their fiat money in their NBM account, which will then be deposited in an omnibus account of the NBM with a licensed provider of crypto trading services.
“Upon receiving an order to buy Cryptocurrency from the customer, the purchase will be executed using the money deposited in the omnibus account, as mentioned above, and will be recorded in the customer’s account with the NBM.”
– TASE stated in the press release.
Israel Warns the Public Over Crypto Risks
TASE’s move represents the latest push to “encourage innovation and competition” while reducing the risks and protecting the investors, the stock exchange noted in the press release. The proposal comes just several months after TASE unveiled plans to develop a crypto trading platform.
Over the past year, Israeli regulators have been cautioning the public about the crypto market risks highlighted by several collapses and a sharp decline in prices. Earlier this month, the country’s market regulator published a warning against unlicensed crypto exchanges.
TASE said the crypto downturn had stressed the need for better sector regulation, which continues to grow rapidly amid increasing mainstream adoption. As such, the stock exchange’s proposal to let NBMs offer crypto trading represents an attempt to meet the surging demand for digital assets while mitigating the “inherent” risks in crypto activity.
Other global governments have also ramped up their efforts to regulate the crypto industry, such as the UK, Singapore, and India.
This article originally appeared on The Tokenist
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