Israel’s Ministry of Finance Issues a Series of Digital Asset Regulatory Recommendations

The Israeli Ministry of Finance issued a series of digital asset regulatory proposals, calling for the establishment of a new regulatory infrastructure, empowered by legislation to regulate the issuance of asset-backed digital assets (including stablecoins) and the financial services provided through them, and empowered by legislation. The Bank of Israel has regulatory powers over digital assets that have “significant stability or monetary effects.” At the same time, the guidelines also propose allowing the Bank of Israel to tax overseas cryptocurrencies and creating an interministerial committee to oversee decentralized autonomous organizations (DAOs).