There are different perceptions on whether Bitcoin, the most popular cryptocurrency, is a legal asset. In Israel for instance, the securities authority has termed Bitcoin, not a security. The move by Israel was surprising and creates an exciting example for the rest of the world.
Israel Rules on Bitcoin
A few months ago, Bitcoin was facing regulation all over. It seems most countries in the world are currently coming up with some restrictions. It remains clear that it is hard to offer a legal definition of a form of currency that is virtual and has never existed before. What remains is to see how these countries will tackle this issue currently and in the future.
In Israel, a decision was made that since Bitcoin is used for consumption only, it will not be considered a security. Apart from Bitcoin, the verdict made by the Israel Securities Authority also applies to ICO tokens .the move is surprising, considering that there has never been any real use of ICO tokens to date.
The committee made to deal with these issues was created in August 2017. Since its creation, the committee has been scrutinizing the regulation of ICOS and digital currencies. It is a fact that Bitcoin and other cryptocurrencies pose a significant threat to the financial stability of most countries. However, Israel is not shaken by any of these developments, but it will feel the impact of this new form of currency in the future.
To be precise, the committee was determined to evaluate if the underlying financial securities in Israel would apply to both Bitcoin and ICO tokens. It is clear that the existing rules do not integrate appropriately with these new forms of money, though there is the possibility of applying some formal rules in this regard.