Tel Aviv Stock Exchange Plans to Let Customers of its Non-Bank Members Trade Crypto
The Tel Aviv Stock Exchange (TASE), which operates Israel's only public equity trading platform, wants to expand authorized activities to allow customers of its non-banking members to trade crypto, according to a Monday announcement.
Non-banking financial institutions can provide services like investment, consulting, brokering or cashing checks but can't accept deposits from the public.
TASE's proposal to change its rules is now open for public comment, after which it will be submitted for approval by the entity's board of directors, the announcement said.
The proposed structure will require non-bank members to buy and sell crypto on customers' demand through licensed crypto trading and custody services.
Following the crypto market turmoil in 2022, regulators in Israel have been warning the public and institutions of risks involved. In early February, the country's markets regulator issued a warning against unlicensed crypto exchanges, while on Sunday, the Bank of Israel warned local banks and credit card companies of the risks of engaging with crypto companies.
TASE said the move to cover crypto trading for non-banks is an attempt to meet the growing demand for crypto while mitigating the the various risks "that are inherent" in crypto activity.
A strategy document from October showed TASE was looking to set up a blockchain-based digital asset trading platform.