Israel Regulator Seeks To Ban Bitcoin Firms From Tel-Aviv Stock Exchange
Israel seemingly dealt another blow to Bitcoin after the country's market regulator proposed to ban cryptocurrency-based companies from trading in the Tel-Aviv stock exchange. The decision was partly due to the inherent volatility of digital currencies and fears that the current craze is developing into a full-blown speculative bubble.
Shmuel Hauser, the chairman of the Israel Securities Authority (ISA) told the Calcalist business conference he will bring the proposal to the ISA board next week. If the board approves, it will then be subject to a public hearing after which the stock exchange bylaws would need to be amended.
"If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended," Hauser said, adding the ISA must find the appropriate regulation for such companies.
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According to Hauser, the prices of Bitcoin behave like bubbles and they that they don't want investors to be subject to that volatility and uncertainty. He added that it is important to signal to the market where ISA stands on the digital currency.
The value of Bitcoin dropped sharply on Friday plunging by 30 percent to below $12,000 after investors dumped the cryptocurrency following its sharp rise to $20,000. The price dropped also affected several crypto-companies, many of which lost a significant portion of their market capitalization.
Hauser did not identify which companies will be affected by the ban. However, there are at least two companies in the Tel-Aviv stock exchange that explicitly describe digital currencies or the technology behind them as essential to their business. These are Blockchain Mining (BLCM.TA) and Fantasy Network (FNTS.TA).
The former recently changed its name from Natural Resources, shifting its focus from mining for gold and iron to mining cryptocurrencies. Following this announcement, the company's stock price soared 5,000 percent in the past few months. So far, the company has not issued a comment regarding Hauser's proposed ban.
