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- ISA is not convinced to consider Kirobo’s tokens as assets
- The authority claims such tokens are securities and should be regulated under the securities regulations
- ISA revealed that Kirobo seems to have plans for increasing the value of the token it wants to issue
- The decision of ISA rolled out a week after SEC filed a lawsuit against Ripple
According to the Israel Securities Authority (ISA), any crypto tokens issued by firms are not assets but securities like stocks. Recently, Kirobo, an Israel-based firm protecting crypto users from human errors, approached the ISA, convincing it to offer crypto tokens as a utility token. However, following the approach, the ISA clarified that such tokens would be classified as securities and not assets. Hence, such crypto tokens will be subjected to the county’s securities regulations and not asset regulation.
An unsuccessful try to convince the ISA
Kirobo, the Israeli startup, had developed a logic layer that sits at the top of single blockchains, protecting the individuals in the space from human errors. Recently the firm had tried to convince the ISA that the blockchain firm wants to launch a utility token that should not be subjected to the same regulations as securities. However, the securities authority denied the fact by claiming that the tokens should be regarded as securities. Comparing the tokens with securities might be the risk of holding them or the buyers’ expectations to hold them for a shorter or more extended timeframe.
Kirobo has plans to increase the value of the crypto token
The securities authority also revealed that the blockchain firm’s plans to keep hold of 0.8% of the tokens are signs that the firm wants to increase its token value. According to ISA, there are possibilities that investors will buy the token for financial purposes, and considering the fact, the value of the token will rise. However, this characterizes investments in securities like stocks.
SEC seems to inflame the financial authorities globally
It is observed that the tokens as securities claim of ISA came after a week the United States Securities and Exchange Commission (SEC) charged Ripple, one of the top fintech firms of the world, regarding its crypto token XRP. Observing the current scenario, it is observed that financial regulators all around the world are still evaluating and creating estimations on how they should regulate crypto assets like Bitcoin and other altcoins. However, now the future court decisions could only determine whether cryptocurrencies make the leap towards a mainstream asset. Indeed, where assets like XRP are falling due to the regulatory decisions, Bitcoin and Ethereum, as the two most famous cryptos, have surged over recent weeks.
