Israel cracks down on Bitcoin

Israel is the latest in a series of countries to crack down on cryptocurrencies. The Tel Aviv stock exchange will not promote or allow companies trading in Bitcoin or cryptocurrencies.

Israel cracks down on Bitcoin
Israel cracks down on Bitcoin

Bitcoin has been skyrocketing in price which has led to many governments believing that its citizens could be in a risk of a bubble. Countries like China has already banned initial coin offerings and decreased the existence of Bitcoin exchanges.  With Bitcoin having characteristics of being unregulated, governments are slowly not encouraging the use of Cryptocurrencies.

Shmuel Hauser, director of Israeli regulator has appointed a committee to look into the regulation of Bitcoin.“Nobody knows what stands behind this, because the public is unprotected,” Hauser commented.

Bitcoin is very volatile, by falling almost 30% with the biggest sell off of the year a week ago, and even increasing back to normal in a few days. Bitcoin had even touched record feats of about $20,000.

“I think it looks like a bubble, smells like a bubble, acts like a bubble and feels like a bubble,” Mr Hauser said.

Israel is seen to adopt Bitcoin quite rapidly, with announcements of delving into the soaring coin. This has led to their shares also increasing in value. Israeli companies maximizing on the cryptocurrency fame has thus been limited, by the Israeli security authority.

The Israeli regulator has strict conditions that will wipe out and remove companies involved in cryptocurrency and its exchanges. As per reports Israel may create its own state cryptocurrency, which will allow users to transact within each other and businesses without the need for banks.

This will not be the only country, reporting and working on its official digital currency. Countries like China, Japan and Sweden are already updating themselves in creating a local cryptocurrency.

With cryptocurrency taking a forefront, India too is seen working towards steps to make sure cryptocurrency is well protected. Bitcoin trading has been surging in India with almost eight million Indians trading in this digital currency. Income tax department in India is currently surveying major Bitcoin exchanges in India and will collect information about transactions to make sure tax evasion is not taking place.  India will develop a Cryptocurrency called Laxmi soon enough which will be the local Cryptocurrency.