President of the Institute of Certified Public Accountants against procrastination in the crypto market regulation: “It’s time for brave decisions”

The Institute of Certified Public Accountants calls for the regulation and enforcement of regulation regarding crypto activity and digital currency trading: The president of the bureau, CPA Chen Schreiber, announced the establishment of an expert committee to formulate immediate recommendations for tax authorities and capital market supervisor Dr. Moshe Barkat.

Against the background of the entry into force of the order banning money laundering on financial service providers and increasing discourse on the subject, one of the first decisions of the President of the Institute of Certified Public Accountants Chen Schreiber concerns the hot potato, affecting a variety of service providers (fintech, credit and crypto companies). Is the need for a supervised, orderly and transparent accounting and taxation mechanism. In fact, the entry into force of the order opens the door to granting a permanent operating license to entities dealing in digital currencies. However, the responsible regulator, in charge of the Capital Market Authority, is still in the process of reviewing various crypto entities that have applied for a license.

A series of decisions and orders issued in recent years, both by the Bank of Israel and the Capital Market Division, have attempted to set clear boundaries and create disclosure mechanisms, but in practice, many accountants are afraid to take responsibility for many buyers. The blossoming of the local fintech industry, we are witnessing an alarming stagnation.

In many countries, including Canada, Japan and the United States, banks allow uninterrupted crypto activity, along with a professional enforcement system and the ability to collect billions of dollars in cryptocurrencies, while the US also has a Nasdaq crypto exchange (Coinbase). Despite an explicit ruling by the Israeli Supreme Court as early as February 2018, according to which banks must allow supervised crypto activity in customer accounts while managing risk in a controlled manner, most banks refuse to allow funds to be transferred to and from the accounts. .

CPA Chen Schreiber (Photo: Reuven Kapuchinsky)

Chen Schreiber, President of the Institute of Certified Public Accountants: “We receive dozens of inquiries a day from accountants who feel exposed and want to act to rectify the situation. It is time to make courageous decisions. It is inconceivable that in Israel Digital platforms, in violation of the law (securities laws, the Financial Services Supervision Law, the prohibition of money laundering, etc.) and non-reporting to the tax authority, all in the absence of enforcement by the Capital Market Authority and other regulators. Israel is rightly considered a high-tech, fintech and blockchain powerhouse. Hundreds of Israeli companies, some of them leading and pioneering in their field, are developing services and technologies that aim to create efficient and innovative tools in the field of finance and banking. But fintech and blockchain ventures require a safe regulatory environment – and unfortunately here we are significantly behind many countries in the world – and the result is the flight of many Israeli entrepreneurs abroad. Security for the public whose money is handled by the various companies, and in order to create certainty for the entrepreneurs that they are acting legally, therefore regulation is needed, which will also know how to answer various questions of the entrepreneurs (Pre ruling). “Uncertainty and fear to act for their customers so as not to be exposed themselves. It is time to put an end to this customer and regulate this important arena.”

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