Israel Finds Crypto-Currency Not A “Security”

The Israel Securities Authority Committee for the Examination and Regulation of Initial Coin Offerings has ruled that ““cryptocurrencies that are designed to be used exclusively as a medium of payment, clearing, or exchange and are not limited to a specific venture; that do not confer additional rights; and are not controlled by a central entity — will not be deemed securities.”

That is not much different than the U.S. Securities and Exchange view. Where the ICO is not intended to create a profit from the efforts of others, it is not likely that the SEC would find the “currency” itself a security.

The ISA said: “,,,cryptocurrencies that represent rights to a product or service and are acquired solely for the purpose of consumption and use and not for investment purposes, will not be considered securities.”

https://news.bitcoin.com/israel-declares-bitcoin-is-not-a-security/

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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