Israel Securities Authority (ISA) approves Simetria’s proposal to operate a digital bulletin board for investors
The Israel Securities Authority has permitted Simetria to operate a digital bulletin board for investors ahead of its digital securities exchange launch. The application letter described the increasing integration of DLT technologies into market infrastructures globally, and the evolution of legislative frameworks to accommodate this innovation.
With respect to Israel, a Memorandum of Securities Law published by the ISA in 2020 introduced legislation that facilitated the creation of smaller-scale digital exchanges:
“The Ministry of Finance wishes to promote securities trading activities on trading platforms that do not operate on the same scale as the Tel Aviv Stock Exchange, and have unique features or designated purposes, such as trading platforms designated for sophisticated investors (such as insurance companies, pension funds, and banking corporations) or platforms that use novel technologies (such as blockchain technology).”
Furthermore, the letter requested the Israel Securities Authority (ISA) to approve its operation of one of its products. The product is a “digital bulletin board” that offers information on private firms that raise capital in the primary markets. It also included information about the securities of private firms that were offered for sale by their owners. In the bulleting board, buyers and sellers will be allowed to publish sales and purchase indications of various kinds.
As per the reports published by Israel newspaper The Globes on Feb. 17, the Israel Securities Authority (ISA) has approved Simetria’s request for operating the bulletin board. Ziv Keinan, who is the CEO and co-founder of Simetria said that the approval brings Israel in step with those countries at the forefront of digital securities innovation globally:
“The ISA’s decision is a dramatic milestone towards the establishment of a digital securities exchange in Israel […] Private companies will soon be able to offer digital securities to international institutional investors on Simetria’s technology platform in a way that will allow them to raise capital and gain liquidity.”
Moreover, Oded Spirer, who is the CEO of the ISA has echoed Kienen’s perspective and said that “digital securities markets are no longer in the distant future, but rather in the here and now.”
In some of the recent crypto regulatory developments in Israel, a few lawmakers have proposed existing tax legislation so that digital currencies like Bitcoin will not be subjected to capital gains taxes. In fact, it will be treated more like Fiat currencies. If pursued, this proposal can lower Israel crypto investors’ tax bills.