{"id":561083,"date":"2023-03-08T17:01:00","date_gmt":"2023-03-08T14:01:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/"},"modified":"2023-03-08T17:01:00","modified_gmt":"2023-03-08T14:01:00","slug":"tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/","title":{"rendered":"# Tel Aviv Stock Exchange\u2019s crypto trading proposal a \u2018closed-loop system\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2db7c5ee8a5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2db7c5ee8a5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/#%E2%80%9D_Tel_Aviv_Stock_Exchanges_crypto_trading_proposal_a_%E2%80%98closed-loop_system_%E2%80%9C\" >&#8221; Tel Aviv Stock Exchange\u2019s crypto trading proposal a \u2018closed-loop system\u2019  &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/#How_TASE_plans_to_conduct_crypto_trading\" >How TASE plans to conduct crypto trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/#One_step_forward\" >One step forward<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/tel-aviv-stock-exchanges-crypto-trading-proposal-a-closed-loop-system\/#Two_steps_back\" >Two steps back<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Tel_Aviv_Stock_Exchanges_crypto_trading_proposal_a_%E2%80%98closed-loop_system_%E2%80%9C\"><\/span>&#8221; Tel Aviv Stock Exchange\u2019s crypto trading proposal a \u2018closed-loop system\u2019  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>When the Tel Aviv Stock Exchange (TASE), the only public stock exchange in Israel, announced that it drafted a proposal for regulation-friendly crypto trading on Feb. 27, it echoed across the crypto industry as a step forward for crypto adoption. However, some experts have framed the proposal as a somewhat underwhelming update to the current crypto landscape in Israel.\u00a0<\/p>\n<p>In short, the TASE proposes that only authorized brokerages act as fiat-to-crypto onramps, aided by licensed crypto trading providers. The stock exchange said that it designed the framework to mitigate risks and enhance consumer protection. Without a specific timeframe, the proposal will be sent for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roval by the TASE board of directors once the public comments have been submitted.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_TASE_plans_to_conduct_crypto_trading\"><\/span>How TASE plans to conduct crypto trading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Non-banking members (NBM) of the Tel Aviv Stock Exchange will play a vital role in the proposed crypto trading services. An NBM is an Israeli broker authorized by TASE. The official roster <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tase.co.il\/en\/about_tase\/tase_members\/tase_members_list\">shows<\/a> six brokerage firms with a TASE membership, including UBS Securities Israel, Meitav Trade and Fair Financial Technologies. If the proposal passes the board, these brokers will get in touch with two functions, a licensed crypto trading services provider and a licensed crypto custodian, in order to enable customers to deposit and withdraw fiat money to use for crypto investments.<\/p>\n<p>When a customer wants to trade with crypto, they will need to start by depositing fiat money, Israeli shekels or a foreign currency, to their brokerage account. The broker will then deposit the same amount (still in fiat) in an omnibus account at the licensed crypto trading provider, or crypto exchange. <\/p>\n<p><strong><em>Recent:\u00a0In crypto winter, DeFi needs an overhaul to mature and grow<\/em><\/strong><\/p>\n<p>As soon as the customer places the order to buy cryptocurrency, the actual purchase will be executed at the crypto exchange via the omnibus account. It will also be recorded in the customer\u2019s brokerage account. Conversely, when a sell order is initiated, the crypto trading platform will sell the coins and send the sum to the same omnibus account as fiat money. From there, the same amount will be deposited back into the customer account at the brokerage.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"One_step_forward\"><\/span>One step forward<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The stock exchange sees a regulatory framework for crypto trading as a means to upgrading the Israeli capital market in line with international standards, according to the announcement, which reads:<\/p>\n<blockquote><p>\u201cTASE believes that the alignment of local regulation with international regulation will attract more foreign investments and foreign investments and foreign investors into the Israeli market, while at the same time will enable the Israeli public to invest locally, through supervised institutions.\u201d<\/p><\/blockquote>\n<p>Ben Samocha, the CEO and co-founder of educational crypto platform CryptoJungle, referred to enabling crypto trading for authorized brokers as another milestone for crypto adoption in Israel. According to him, TASE\u2019s proposal shows the crypto industry\u2019s reputation is back on track after scandals surrounding FTX and Celsius damaged its credibility and trust.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/ef3652a6-4b27-4229-97ad-e4142a60dd4c.jpeg\"><figcaption style=\"text-align: center;\"><em>Display in the lobby of the Tel Aviv Stock Exchange. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>\u201cLeading brokers such as Excellence and Meitav Trade are providing services for hundreds of thousands of Israelis,\u201d Samocha said, adding that there have been many requests of them to offer crypto services, \u201cespecially in the last two years.\u201d<\/p>\n<p>While the nature of the TASE solution will make cryptocurrency more accessible as an investment vehicle, Samocha stressed that it\u2019s not the best solution for the end user:<\/p>\n<blockquote><p>\u201cUsers will only be able to deposit and withdraw fiat, not crypto. The crypto itself will be held in custody by a third party. While it&#8217;s a step towards the right direction, we still have a long way to go.\u201d<\/p><\/blockquote>\n<p>Mark Smargon, the founder and CEO of blockchain-based payment platform Fuse, agreed that the proposal is \u201cnot improving anything for the clients themselves.\u201d Since the proposal only includes authorized brokerages that are members of the Tel Aviv Stock Exchange, Smargon believes that it won&#8217;t have much impact on non-public firms or banks.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Two_steps_back\"><\/span>Two steps back<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Delving into technical details of the proposal, Smargon pointed out that it\u2019s mainly for purchasing crypto \u201cwithin a closed-loop system.\u201d The idea of self custody goes out of the window with the TASE proposal, and users would need to invest in crypto via a select number of brokers and custodians. \u201cThat misses the point of the technological advantage of blockchain and only lets users speculate on asset prices,\u201d he added.<\/p>\n<p>Smargon highlighted the underwhelming impact the proposal would potentially have on the local crypto ecosystem, as \u201cjust a handful of licenses were issued while <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> bank acceptance is low.\u201d He said:<\/p>\n<blockquote><p>\u201cIf the objective is to create clarity with listed companies that wish to provide crypto trading for their clients by giving a handful of centralized, authorized entities the rights to all the brokering and custody, then that sounds like one step forward and two steps backward.\u201d<\/p><\/blockquote>\n<p>Aside from drafting a crypto trading framework that prioritizes tighter control for investor protection, the TASE is also working on advancing blockchain adoption within the country\u2019s finance ecosystem. Together with the Israeli Ministry of Finance, digital assets custody provider Fireblocks and the United States-based tech provider VMware, TASE plans to pilot a blockchain-backed platform for trading digital bonds.<\/p>\n<p><strong><em>Recent:\u00a0Is the IMF shutting the door prematurely on Bitcoin as legal tender?<\/em><\/strong><\/p>\n<p>Expected to be finished by the end of March, the pilot will see participating banks receiving a new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of tokenized government bonds in their e-wallets via the newly developed platform, transferring the money held in digital currencies to the Israeli government\u2019s digital wallet.<\/p>\n<p>Shira Greenberg, the chief economist at the Israeli Ministry of Finance, published a detailed report titled \u201cRegulation of the Digital Assets Sector \u2014 Roadmap to a Policy\u201d that focuses on the rise of digital currencies and how policymakers can tackle the legal aspect of crypto. Greenberg recommended strict licensing requirements for trading providers and issuers of cryptocurrencies to keep investors protected. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/tel-aviv-stock-exchange-s-crypto-trading-proposal-a-closed-loop-system\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Tel Aviv Stock Exchange\u2019s crypto trading proposal a \u2018closed-loop system\u2019 &#8220; When the Tel Aviv Stock Exchange (TASE), the only public stock exchange in Israel, announced that it drafted a proposal for regulation-friendly crypto trading on Feb. 27, it echoed across the crypto industry as a step forward for crypto adoption. However, some experts&#8230;<\/p>\n","protected":false},"author":1,"featured_media":561084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/17c55d1d-11c8-4a5d-8497-3ee968605c32.JPG","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74860,75917,132387,74355,117,2184,25460,4965],"class_list":["post-561083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrency-exchange","tag-exchanges","tag-stock-exchange","tag-adoption","tag-business","tag-israel","tag-middle-east","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=561083"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/561083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/561084"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=561083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=561083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=561083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}