Regulatory Update – Indonesia, Israel, and Morocco

If something good is to be found in the FTX meltdown, it is the newfound sense of urgency by governments to finally pay attention to the digital asset sector and develop clear framework for its regulation.  While this urgency will no doubt result in overly restrictive conditions in some instances, clarity is always a good thing.  The most recent examples of developing framework comes from the following trio of nations – Indonesia, Israel, and Morocco.

Indonesia

In mid-December 2022, Indonesia saw its Financial Sector Development and Reinforcement Bill approved.  With it the country will see its Financial Services Authority (FSA) take over regulating the digital asset sector.  As this transition nears, the current head of Bappebti (the agency which currently oversees the sector), has indicated that the country is in the midst of developing its own crypto-exchange.

The government run exchange, which is expected to launch in the coming months, marks a modest step forward for a nation which 5 years ago banned the use of crypto as a means of payment.

Israel

A fresh proposal released by the Israeli Securities Authority (ISA) looks to tackle the regulation of digital assets.  The nation is currently seeing an increase in interest pertaining to digital assets, prompting this attention by its regulators.

In its proposal, the ISA looks to not only amend current securities definitions to encompass digital assets, but also to establish itself as the authority overseeing the sector as a whole.

The goal of its proposal, and reach for more power over the sector, is not to inhibit the growth of digital assets, but to ensure trading platforms are operating in a safe manner, minimizing investor risks in the process.

Morocco

Meanwhile in Morocco, it is believed that the North African nation will soon see the unveiling of its first bill aimed toward regulating digital assets, per CoinTelegraph.  Although spearheaded by Bank Al-Maghrib (the central bank of Morocco), commentary from its Governor, Abdellatif Jouahiri, points to the bill being a joint effort with contributions by both the World Bank and the International Monetary Fund (IMF).

Like most of these new frameworks expected to be unveiled in the near future, the goal is to establish baseline protections and standards within the sector, without inhibiting innovation and growth.