Israel's Securities Authority has been called on to help foster the creation of a national platform for trading cryptocurrencies with a view to enabling companies to raise money by issuing digital tokens.
The recommendations, published by a committee set up by the ISA in 2007, come at a time of falling investment in listed companies. It is thought that the creation of a regulated crypto sector may attract new investment and increase competition in capital markets.
The Committee has called for the regulator to consider amending existing Securities Law to encompass public offerings in Israel based on a distributed ledger and trading in them.
To help push innovation, the report additionally suggested the creation of a sandbox regime capable of handling cryptographic asset offerings, and accompanying entrepreneurs in this format.
ISA Chair Anat Guetta welcomed the recommendations, saying: "The excitement that permeated the ICO sector in 2017 has cooled, but the technology is here to stay. I call on the companies and the parties in the sector to maintain direct, continuous, and long-term contact with us in order to facilitate the sector's development."