The head of the Israel Securities Authority, Anat Guetta, will organize a hackathon of Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. in March as a first step towards establishing broader oversight in the country’s fintech space.
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The president of the Israel Securities Authority (ISA) Anat Guetta, has big plans to regulate the country’s fintech space. As a first step, next month it will organize its first fintech hackathon. This was reported by Coindesk in an exclusive interview with her.
He indicated that the ISA seeks to attract, with thehackathon, solutions based on Blockchain that can improve the infrastructure that supports the securities and sovereign debt markets in Israel. The securities regulator partnered with Israel’s Ministry of Finance, as well as technology providers such as VMware, Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Asset yAlgorand, to organize the on-site hackathon, which will take place on March 24, 2022 in Tel Aviv.
The hackathon will be led by privacy technology vendor and QEDIT a World Economic Forum (WEF) technology pioneer, which plans to help teams discover and bridge gaps in privacy compliance and regulation.
According to Anat Guetta, president of the ISA, the hackathon of Blockchain is part of a broader initiative for the ISA to not only collaborate with practitioners in fintech innovation, but also begin to gather the expertise and influence needed to regulate the fintech and crypto sector.
An economist and banker with decades of experience, Guetta has served as president of the ISA since 2018. In 2020, Guetta said distributed accounting technology had the potential to transform Israel’s capital markets.
Integrate innovative technologies
CoinDesk spoke to Guetta about the ISA’s plans for the hackathon and Israel’s long-term goals for regulating cryptocurrencies. She told the outlet that “the main motivation behind the hackathon is to facilitate the transfer of technology from a development environment to applications in a real large-scale environment that can bring to light various technological, business and regulatory issues.” He added:
We look forward to integrating novel technologies into Israel’s existing capital capital is most commonly defined as the large sum of money you would use to invest. market an area or arena, online or offline, in which commercial dealings are conducted. infrastructure, and believe that the ISA’s steps will encourage other regulators in the country to promote projects involving new technologies.
He explained that he hopes the hackathon will serve as a catalyst for effective, high-level collaboration between various players in Israel’s financial system. “The hackathon will serve as a meeting place between the ISA and developers, technology companies and academics. Bringing together teams from these technology providers will create an opportunity for regulators and other interested parties to gain in-depth technical knowledge about global fintech developments. This is also the first fintech-focused hackathon organized by Israeli regulators.”
Separate Crypto and Blockchain
Recognizes that regulators “are lagging behind when it comes to technology.” Therefore it expresses: “We’re here to balance and monitor and supervise.”
We see crypto and Blockchain as two separate phenomena. We see great potential for Blockchain technology. Cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. is a separate issue that we are examining and considering how it should be supervised holistically in Israel, as it should be in other areas of the world.
He said that at the hackathon the first thing he will examine is the issuance of government securities and bonds. “Different types of assets, such as stocks and bonds, have different issuance requirements, sometimes involving several different parties, such as brokers. It means that the originators of an asset often don’t have a direct channel to investors and buyers, which complicates processes. This experiment will inform us about other innovative ways to lead securities issuance and governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. using blockchain in the future.
He stressed:
“We look at the statistics. We see that most Blockchain companies don’t operate in Israel. They prefer to operate outside of Israel. I think we are losing them as an economy and as a country. We need very precise and clear laws to bring them back here. And we must create the conditions to allow them to work from Israel in a legitimate and acceptable way. So our higher mission is to get the right powers to allow this.
The “right” regulatory framework
About cryptocurrencies he said: “I think they need a holistic regulatory framework in Israel that covers the industry from start to finish. We are watching very closely what the US and its Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) are doing.”
He added: “I think the nuances that regulators are trying to find between different types of crypto assets are wrong. I think we should take cryptocurrencies as a whole and implement regulatory oversight because otherwise the technology is smarter than us. Regulators didn’t notice when the fad of Initial Cryptocurrency Offerings (ICOs) started in early 2018. Today we have very sophisticated cryptocurrency issues that are not exactly securities like stable coins or utility coins. We should take a very broad definition of crypto and have the authorities oversee it. I think this is the right direction.”
In addition, he indicated that the “nuances between securities and cryptocurrencies are not very clear.” .
When asked about Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. specifically said it didn’t seem much different to him than other crypto: “When bitcoin was created in 2009, it was a very small phenomenon before it became what it is today. Many other crypto assets that are active today are on the same path. So I don’t differentiate between bitcoin but, as I mentioned, bitcoin is not defined as a security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. today and to go there, the ISA will have to get the rights and the legislation to give us the right powers that we need. “.
He finished:
We need to wake up and understand that there is no real difference between cryptocurrencies and securities and we need to unify definitions to protect consumers and investors, and to make this industry legitimate.
Sources: Coindesk , Finbold, archivo
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