Companies which have their market values primarily based on cryptocurrencies and other virtual currencies will be debarred by Israel Securities Authority to be traded on Tel Aviv Stock Exchange. This development was intimated by the authority chairperson Shmuel Hauser. He did not hesitate to proclaim that the Bitcoin price is, in reality, a bubble. He said that nobody knows how the virtual currency can have so high values. His words may have truth: the Bitcoin price went south by about 30 percent during the third week of December. The Chairperson informed the media that he would start a process of rule making in January which will have the result of removal of the cryptocurrency concentrated companies from stock market. New companies will also be banned from any listing until a better regulatory framework can be created by the authority
Hauser announced the news at a Calcalist hosted conference on March 25. He pointed out that the regulations right now has left investing public vulnerable from risk inherently present in Bitcoin and in a number of other virtual currencies.
The first week of December witnessed a number of Tel-Aviv companies see their stock price moving sharply up after they announced plans to enter the virtual currency realm. One of them, Natural Resources Resources Holding Limited, saw its market value jump up by 4,000 percent within a matter of few weeks. Similar scenes were seen in the case of Fantasy Network Limited, a Tel Aviv headquartered company. The latter had announced that a blockchain adviser was inducted in its payroll, The stock price of the company subsequently doubled before the market close for the day.
Restrictions In Place
Officials from the Israeli securities authorities also scheduled a meeting with various mutual fund managers so that they can be warned against investing in cryptocurrencies. It helped that the hype is now much down.
Hauser has appointed a committee which is right now trying to draft the recommendations on the subject of regulating securities intimately linked with cryptocurrencies. These steps will hopefully insulate the investors from the many vagaries of cryptocurrency speculation. The measures began during the middle of December when the authority took the landmark decision not to include stocks associated with cryptocurrencies to be included in the indices of Tel Aviv Stock Exchange. The stock price of Natural Resource Holdings, now renamed as Blockchain Holdings Limited dropped steeply south.