Tel Aviv Stock Exchange’s crypto trading proposal a ‘closed-loop system’

cointelegraph.com:

When the Tel Aviv Stock Exchange (TASE), the only public stock exchange in Israel, announced that it drafted a proposal for regulation-friendly crypto trading on Feb. 27, it echoed across the crypto industry as a step forward for crypto adoption. However, some experts have framed the proposal as a somewhat underwhelming update to the current crypto landscape in Israel. 

In short, the TASE proposes that only authorized brokerages act as fiat-to-crypto onramps, aided by licensed crypto trading providers. The stock exchange said that it designed the framework to mitigate risks and enhance consumer protection. Without a specific timeframe, the proposal will be sent for approval by the TASE board of directors once the public comments have been submitted.

Non-banking members (NBM) of the Tel Aviv Stock Exchange will play a vital role in the proposed crypto trading services. An NBM is an Israeli broker authorized by TASE. The official roster shows six brokerage firms with a TASE membership, including UBS Securities Israel, Meitav Trade and Fair Financial Technologies. If the proposal passes the board, these brokers will get in touch with two functions, a licensed crypto trading services provider and a licensed crypto custodian, in order to enable customers to deposit and withdraw fiat money to use for crypto investments.

When a customer wants to trade with crypto, they will need to start by depositing fiat money, Israeli shekels or a foreign currency, to their brokerage account. The broker will then deposit the same amount (still in fiat) in an omnibus account at the licensed crypto trading provider, or crypto exchange.

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As soon as the customer places the order