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Can the IPO of Coinbase trigger a revolution in Israel’s cryptocurrency landscape?

General / May 05, 2021

The cryptocurrency trading platform, Coinbase has just IPOd on NASDAQ, bringing activity in the crypto sector into the mainstream. Now, the regulator must follow suit and treat this phenomenon seriously.

As the largest exchange in the U.S. for cryptocurrency, Coinbase’s shares jumped almost a third on its first day of trading. Coinbase’s success is paving the way for more crypto exchanges to also look for public listing. At the moment, Bermuda-based Binance (largest crypto exchange in the world) and U.S.-based Kraken are the most likely exchanges to launch the next crypto-focused IPO., with America’s OKCoin and Israel’s eToro and INX, also watching closely.

Authorities tend to be squeamish when it comes to crypto-coins – fearing it is opening the door to financial crimes, terror funding, organized crime and cyber threats. That is why the IPO is considered a game changer.

From strict resistance to an in-depth examination, the Israeli regulator is taking it seriously. Representatives from the Ministry of Finance, Ministry of Law, Israel Money Laundering and Terror Financing Prohibition Authority and the Israel Tax Authority have begun to create guidelines for a regulatory habitat for crypto companies and their activities.

While the Tel Aviv Stock Exchange is yet to see the IPO of a crypto company, several companies, such as Kirobo, Whitesmoke Software and Kaman Capital are negotiating and showing signs of interest. As investors are looking for ingenuity and novelty, it is perfectly reasonable to look at Coinbase’s IPO as the kickoff of regulated cryptocurrency trade.

In Israel, it is a question of time, the regulator has to just determine how it will be done. The green light from the regulator will be a gamechanger. Dave Weisberger, CoinRoutes CEO, was quoted saying “allowing and forcing such markets to follow a regulated, rational regime might enhance investors trust and the participation of “Institutions” in the market.”

Senior Partner and Head of the Capital Markets department, Adv. Ilan Gerzi, and senior lawyer, Adv. Michal Ohana at Pearl Cohen Zedek Latzer Baratz wrote the article in TheMarker.

This information should not be taken as a substitute to legal or investment advice.

See full article here. – Hebrew