In a bid to reduce systemic risk, the Israel Securities Authority has announced that it will not include companies operating in the cryptocurrency industry will not be included in the country’s stock exchange indices. News of the determination has been published alongside a public warning issued that seeks to inform prospective investors of the risks associated with cryptocurrency exposure.
Israeli Cryptocurrency Companies Banned From Listing on Stock Exchange Indices
Israel’s financial regulator, the Israel Securities Authority (ISA), has announced that companies primarily operating in the cryptocurrency sector will not be included in stock exchange indices.
According to a rough translation, ISA Chairperson, Ms. Anat Gueta, stated “We decided to avoid exposure to passive investors for companies whose operations are mainly in [crypto]currencies,” adding “These are companies in which the investment is high risk, speculative and volatile.”
The ISA states that the determination has been made in response to “the exceptional trading in securities of companies on the Tel Aviv Stock Exchange who announced in recent months that they intend to operate in the cryptographic currency sector.” In some instances, the regulator asserts that just the announcement a company may be exploring blockchain technology “led to a sharp rise in share prices, even before they have true activity.” […]