Crypto executive claims that categorizing crypto as securities under proposed Israeli legislation will negatively impact the industry.

The CEO of an Israeli crypto service provider has warned that proposed laws classifying cryptocurrencies as securities in Israel would have a detrimental impact on the local crypto industry. Ilan Sterk, CEO of Altshuler Shaham Horizon, explained that the current legal situation for cryptocurrencies in Israel is complex. The proposal is for digital assets to fall under the supervision of the Israel Securities Authority (ISA). Sterk expressed doubts that the proposal would be enacted as is, stating that he was uncertain if it would be exactly as intended. The ISA recently released a proposal granting the regulator broad powers to oversee the Israeli crypto industry. It aims to expand the definition of securities to include “digital assets” used for financial investment and to impose sanctions on non-compliance. The public has until February 12th to provide feedback on the matter.