Israel’s financial regulator is reorganizing its licensing regime for fintech and blockchain companies to stimulate the development of the industry.
The Israeli Capital Market Authority plans to change the order of distribution of licenses in Israel. About 2,000 fintech and blockchain companies are currently waiting for a license from the state regulator. Due to the high demand, the Department will introduce an accelerated licensing regime. The program is aimed at creating small industry management teams that consider incoming applications.
“Business and technological innovations, as well as relations with the industry are the main principles that guide the agency in its activities,” said Moshe Barkat, head of the Department. “The Department is regularly engaged in licensing and regulating fintech companies, including digital insurance companies, P2P platforms, credit providers, digital wallets, blockchain-based fintech enterprises and other payment service providers.”
The Office is also reviewing its current standards regarding insurance for fintech companies. These steps of the regulator are part of a more active effort undertaken by the Israeli Ministry of Finance to promote financial innovation. For example, the regulator recently joined the Global Financial Innovation Network (GFIN). The World Bank and the International Monetary Fund are also participating in this initiative.
The efforts of the Ministry of Finance to regulate fintech and blockchain contradict the policies of local banks, which are causing cryptocurrency investors to suffer. Earlier this month, it was reported that cryptocurrency investors in Israel cannot pay taxes due to the refusal of banks to open accounts for them