Israel’s Govt. And Central Bank Jointly Slams Digital Currencies
Israeli regulators including the Finance Ministry and the Bank of Israel (BoI) has jointly issued warning to the public regarding the holding and trading of any type of cryptocurrency, including the Bitcoin.
JERUSALEM (Scrap Monster) : Israeli regulators including the Finance Ministry and the Bank of Israel (BoI) has jointly issued warning to the public regarding the holding and trading of any type of cryptocurrency, including the Bitcoin. The Govt. of Israel falls in line with several other countries across the world that have cautioned the public about the possible legal and security issues associated with the use of cyrptocurrencies.
These digital currencies which have not been authorized under any of the Govt. legitimacy pose terrible threat to society, especially because it attracts crime. Since the source of the transactions of cyrptocurrencies cannot be traced, it can be easily used for illegal activities. Recently, Bitcoins were under storm owing to the arrest of a top Bitcoin Exchange CEO alleged in using Bitcoin transactions for the ill-famed Silk Road drug trafficking.
According to the Israeli regulators, cyptocurrencies does not possess any legal tender as they are not issued by any Govt.-backed Central Bank. As the digital currencies need not require any legal authorization for accepting or trading them, they cannot be considered safe currency for safe transactions. Volatility is another problem that cyptocurrencies encounter. Regarding security issues, they are prone to cyber attacks which may lead to halting of withdrawals.
The joint statement of Israel regulators was announced during a meeting attended by eminent representatives from the Capital Market, Israel Tax Authority, Israel Insurance and Savings Department, Israel Securities Authorities and the Israel Money Laundering and Terror Financing Prohibition Authority. In the meeting, the delegates agreed to go ahead, examining various perspectives associated with the transactions of cryptocurrencies.