Isreali Keep Eye On Crypto-Oriented Companies

Isreali Keep Eye On Crypto-Oriented Companies

April 16, 2018 0 By FaletiAbiodun

Some companies were previously listed on Tel AVIV Stock Exchange and isreali securities are keeping eye on them. It asks crypto-related firms for clarifications on previous announcements.

Request was sent for clarification by the Isreal secuirities Authority (ISA) to isreali companies that had previously provided announcement related to cryptocurrency. This move indicate that the regulator is not taking the control over crypto-oriented companies listed on the Tel Aviv Stock Exchange (TASE) lightly despite the bearish trend of the crypto market.

ISA announced that crypto-oriented companies would be removed from TASE indices.

ISA Chairman anat guetta stated that the regulator had decided to remove crypto companies from the TASE to protect customers from risky investments.

The regulator came with the proposal last year December, and since then each company announcement has been closely monitored.

The ISA also intended to change TASE rules to keep investors away from companies that hold, invest in, or mine digital currencies like Bitcoin or Ether.

Late last year, Apollo Power (solar energy firm) announced that it has carried out a pilot to use solar energy for mining of crypto, gaining millions of dollars from investors in a matter of days. Based on this announcement, the ISA demanded for clarification, and it was revealed that the pilot had generated insignificant returns. This eventually warrants a suit against the firm.

On Tuesday Apollo said that regulator was carrying out an investigation on the company based on last year events. The company came made second announcement the following, saying it withdraw its operation related to cryptocurrency mining or trading. Apollo recognized that its technology might assist clients to mine in the future, but it’s not a certainty. As a result , Apollo’s stock price dropped 6.43% during Wednesday session.

TASE- listed media company algomizer came out around december when the crypto market was booming to announce that it will soon become part of the crypto industry in a stock exchange filling.

On Tuesday, Algomizer announced that it wanted to conduct an initial coin offering (ICO) to issue tokens

whose price whose would be backed by an external tradable asset through third party.

Upon the announcement investors pushed its stock 11.6% higher.

On Wednesday, upon request from the ISA, the company clarified that prior to conducting the ICO

It would need the submission of a prospectus to the US Securities and Exchange Commission (SEC) given

some, though not all, tokens are considered to be securities. Algomizer also said that it would offer its

tokens to accredited investors only. The company saw its stock price drop 1.2% on Wednesday.