Ban Companies Using Bitcoin From Trading

Shmuel Hauser said he will present a regulation to ban firms using bitcoin and other digital currencies from trading in the Tel Aviv Stock Exchange. If the proposal is approved, it will be subjected to public hearing, and then the bylaws of stock exchange will be amended.

During his address at the Calcalist business conference, Shmuel Hauser, the chairman of the Israel Securities Authority (ISA), informed his plans to bring the proposal to the ISA board on next week.

“If we have a company that their main business is digital currencies we would not allow it. If already listed, its trading will be suspended,” said Hauser.

He added that there is a need for the ISA to place the appropriate regulation for these companies. However, he did not mention any companies that would be affected due to the ban. Two firms, Blockchain Mining and Fantasy Network, had been listed on the Tel Aviv Stock Exchange which outline digital currency or the technology behind them are vital for their businesses.

Blockchain Mining changed its name from Natural Resources on Sunday. The shares of Blockchain rose by 5,000 percent from the past few months, as it declared to focus on mining cryptocurrencies instead of mining gold and iron.

Fantasy Networks, a former gaming company, outlined it had been analyzing the possibility of entering the field of blockchain, the technology supporting cryptocurrencies. The company’s share price raised four times prior to reducing 50 percent in the past two weeks.

It is interesting to see the regulation get approval from ISA and how it would affect these companies.