Hauser: Need to Ensure that ICOs Are Not the New Binary Options

Professor Shmuel Hauser, Chairman of the Israel Securities Authority (ISA), is giving a speech right now about Initial Coin Offering (ICO) regulations at a fintech conference in Tel Aviv. Finance Magnates is reporting live from the event.

"There’s a difference between Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology in general, and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and ICOs. Blockchain technology is here to stay and will enter every aspect of our lives. The coins are a totally different game. It smells like a bubble. Who says that Bitcoin is worth 7000$?!

I want to make sure that the world of coins is not a new mutation of the binary options industry. We’re going to look at the ICO industry on a case by case basis, not ban it altogether.

But first, we have to decide whether it’s a financial tool that falls under our jurisdiction. If it’s a coin and not a security, it doesn’t fall under our jurisdiction. Maybe we can regulate it through corporate laws, but not necessarily by securities laws.

I’m bothered by the lack of transparency in the ICO industry. I say to the investors - beware! It might be a bubble. And as for us, I say that what is legal now, might be illegal tomorrow.

ICOs are a part of a welcomed evolution in the funding industry. But it needs to be properly managed and regulated."