Regulations taking effect in Israel: ISA proposes sandbox approved ICOs

The Israel Securities Authority (ISA) has announced through its chairwoman, Anat Guetta that it is considering a new approach to digital asset regulation. The regulator proposes that the process integrates a sandbox. The cryptocurrency startups in the country will have a relatively easy environment in which to test their products.

The statement from the ISA said that “…examining the establishment of a regulatory environment that makes it easier for companies that use new technology to supply financial products and services. It is possible that this may also be relevant to companies that issue distributed cryptographic coins.”

The ISA set up a committee made up of consultants and lawyers to come up with the most suitable approach to be used to regulate ICOs. The committee later decided after deliberations to incorporate the approach from the US Securities and Exchange Commission (SEC) and regulatory the sandbox. During the sandbox stage, the regulator will allow the startups to test their products, enjoy less stringent measures, advertise on the internet (not currently allowed) and have the opportunity to submit a summarized white paper.