The Bank of Israel, the country's central bank, has just published a set of requirements for "stablecoin" issuers that include a ban on algorithmic stablecoins if they are widely used in payments.
The aim of the initiative is to legalize stablecoins, taking into account the management of their inherent risks, consumer protection and prudential requirements.
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The guide clarifies the rules for regulating digital assets presented by the country's Ministry of Finance in November last year.
Interested parties can leave comments until March 15. In the future, the country's central bank will submit an updated document for government approval.
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According to the document, stablecoin issuers will need permission to operate from the Capital Market Authority.