The CEO of an Israeli crypto service provider has warned that proposed laws in Israel classifying cryptocurrencies as securities would have a detrimental impact on the local crypto industry. Ilan Sterk, CEO of Altshuler Shaham Horizon, explained that the current legal situation for crypto in Israel is complex. The proposed laws would place digital assets under the supervision of the Israel Securities Authority (ISA), which Sterk believes would significantly change the industry. The ISA released a proposal in January seeking to expand its powers to regulate the Israeli crypto industry. The proposal includes requirements for issuers and intermediaries and the ability to impose sanctions for non-compliance. The public has until 12 February to provide feedback on the proposal. In November, the Ministry of Finance also issued its recommendations for crypto industry regulations, including allowing temporary operations in Israel for crypto service providers with a foreign license. According to the ISA, there are around 150 companies operating in the local crypto industry, with over 200,000 Israelis invested in cryptocurrencies.
Crypto executive claims Israeli crypto classification law will have detrimental impact on the industry