The Israeli crypto market was supposed to feel only joy this week. However, things took a turn for the worst on Thursday, resulting in major crypto regulation news. In what is being described as a devastating blow to the Israeli crypto space, the Israel regulation law surrounding crypto trading has been delayed until the fall.
This crypto regulation news is devastating for two reasons, in particular. First, the crypto regulation law was welcomed by the Israeli crypto space, with many counting down the days until it went into effect. Second, the crypto regulation law was supposed to be enacted tomorrow. This means the public was completely blindsided by the decision to delay the law.
Crypto Regulation News | Israel Regulation Law Delayed
Many were looking forward to the law being enacted. Why? Mostly because before the law was proposed, Israeli banks were using crypto’s lack of legal clarity as the reason for them not offering them. The law itself covers various financial service providers. Without it, however, Israeli companies are going to have to go until October without any sort of regulation for these exchanges.
However, it is important to mention that just because the law won’t go into effect tomorrow doesn’t mean that it won’t ever. Moshe Kahlon, the finance minister, stated that the new law cannot be passed until last week’s announced addition to the law has been ratified.
It seems that Israel just wants to make this law perfect before putting it to use, but that doesn’t mean people aren’t outraged. According to the Israeli Bitcoin Association, this decision is going have a range of negative effects, particularly on crypto startups. Why? Reportedly, because it will leave crypto startups in the same situation, ultimately making them choose between staying in Israel or leaving with their company. If that happens, all of Israel’s plans to become a leader in the tech field will hamper.
Are you disappointed by this crypto regulation news? Do you think the delay will affect crypto startups?
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