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- The Israeli agency includes crypto regulation in a proposal.
- The move came amid the rising security concerns after the FTX collapse.
- Crypto sector has lost over $2 Trillion since the November 2021 peak.
With the increasing list of regulations on the crypto sector, nations are trying to extend their control over the decentralized ecosystem. 2022 was a great display of how an industry that once was bathing in profits can turn cold within a few months. Israel, the biblical Holy Land, recently received a proposal from Israel Security Authority (ISA) which involves overseeing digital assets operations in the country.
Security’s at Top
The announcement came following increasing concerns in the middle of market turmoil. The FTX collapse caused panic among investors, leading them to exit their positions. The ISA will take command of sector regulations if implemented. The primary concern remains citizen security from financial harm
The agency also believes that underpinned tech in virtual assets can be economically efficient for the country as it can trigger the flow of diverse capital. Cryptocurrencies haven’t gone mainstream but they have undoubtedly riveted attention of governments across the globe. In a way this indicates digital asset inclusion in the mainstream.
Couple of nations have already accepted crypto assets as their legal tender. In 2021, Nayib Bukele, El Salvadoran president, announced that they will use the flagship asset as their currency. In November 2022, he announced that they would purchase 1 Bitcoin every day amid the market downturn. Moreover, he has revealed plans to develop Bitcoin City on the Gulf of Fonseca.
However, it appears like the El Salvadoran population is not a very big fan of the crowned cryptocurrency. According to a survey, only 17% sees the move as a success while 66% thinks of it as a failure. Moreover, 77% of people want the president to stop buying BTC via public funds.
Central African Republic, a landlocked Central African country, became the second nation to accept a crypto asset as their legal tender in the same year. According to Time, the announcement striked citizens as a surprise, creating speculations about the scenario being a political shift away from Russia and France. Currently, they are working with a private Russian paramilitary organization to counter the rebels amid ongoing civil war.
Crypto market seems to maintain stability while the community awaits a positive momentum in the sector this year. Bitcoin was trading at a market price of $16,866 while sharing dominance with Ethereum at the publication time. Digital asset sector had a market cap at $819 Billion as a whole with metaverse associated tokens like APE, AXS and more gaining during the week.
With more regulators entering the game, it would be worth the view how the sector will sustain decentralization among the centralized players.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
