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Insights & News / Andrey Yanai
ISA: New Guidelines on Offering and Intermediating Joint Investment Arrangements
New memorandum of law regulating the crypto sector in Israel
Licensing and Supervision of Broker-Dealers: Key Points of the New Memorandum of Law
EU's New Guidance: Travel Rule to Combat Money Laundering in Crypto
Curaçao’s regulatory reform in gaming licensing
New Court Ruling Clarifies Legal Boundaries for Offering of Foreign Investments in Israel
Important updates on the Israeli money market reform
The Money Market Reform in Israel is Underway
Israel’s Money Laundering and Terror Financing Prohibition Authority Updates List of At-Risk Countries of the FATF
Proprietary Trading and Global Regulation
MiCA and Reverse Solicitation
The SEC Approves ETFs That Track Bitcoin
SEC Signals Intent to Regulate NFTs
The SEC is taking a regulation by enforcement stance toward NFTs and is creating legal uncertainty in the field. Will the Israel Securities Authority follow suit?
Securities, Digital and Financial Assets: New Definitions
After considering public comments, the Israel Securities Authority is promulgating a revised draft bill seeking to regulate the field of digital assets.
Crypto as a Security – Applying the Howey Test
Regulation by enforcement is designing tests to ascertain which cryptographic assets fall under the definition of “security” in the wake of the XRP crypto token court ruling.
In First, Arrangements Law Includes Extensive Reference to Digital Assets
The draft of Israel’s Arrangements Law – Economic Plan for 2023-2024 addresses digital assets extensively for the first time. The draft bill contains a section dedicated to the regulation of digital assets and addresses stablecoins, taxation issues, the banking system, DAOs (decentralized autonomous organizations) and more.
Digital Assets or Securities?
The Israel Securities Authority recently published a proposal for a series of legislative amendments relating to digital (cryptographic) assets, whose implications go beyond the realm of digital assets and do not herald much good news for Israeli crypto ventures.
Barnea: Guiding Djed in Successful Launch
We are honored to have guided Djed in its successful launch. Djed is a new stablecoin designed to maintain a stable value pegged to the US dollar. It provides its users with a decentralized and secure store of value and facilitates seamless transactions on the Cardano blockchain.
2022: A Turbulent Year for the Cryptocurrency Sector
On the one hand, the cryptocurrency industry is still in the throes of the crisis caused by a series of bankruptcies and one of the biggest scandals in the world of finance. On the other hand, transparent and decentralized alternatives to the centralized financial sector demonstrate why they are so important, as well as their ability to function effectively even in times of crisis.
Can DeFi Use Exempt a Project from Compliance?
Activity in the form of financial decentralization (Decentralized Finance - DeFi) does not exempt from requirements in the field of prevention of money laundering prohibition or compliance with sanctions. It turns out that DeFi is subject to the same "laws of gravity" as projects in the traditional financial industry.
New Draft Regulation on Financial Asset Service Providers
The Israeli CMISA published two draft circulars about its intent to tighten the supervision over crypto assets, in the wake of the Celsius crypto meltdown.
Crypto Custody Services and Regulation – A Review
The issue of whether a party is or is not a custodian may have far-reaching implications. Institutional investors, corporations, exchanges, individuals, and crypto miners all have strong demand for crypto custody services, as provided by special market participants.
Representing the NFT GameChain in Its USD 24 Million A Round
We represented the Israeli crypto and NFT startup GameChain (UnCaged Studio) in raising USD 24 million as part of a series A round.
The round was led by Griffin Gaming Partners and was joined by Vgames, Maverick Ventures Israel, MaxStealth, Drive by DraftKings, and 6th Man Ventures.
Zvi Gabbay, Ariella Dreyfuss, Andrey Yanai and Tal Freilich provided representation in the transaction.
First US Indictment for NFT Insider Trading Offenses
The indictment (US v. Chastain) marks the first time federal prosecutors have brought charges alleging insider trading with digital assets.
Regulating Israeli Banks’ Provision of Services to Licensed Cryptocurrency Service-Providers
The Bank of Israel is proposing to regulate the provision of services to licensed cryptocurrency service-providers so that banks will not be able to sweepingly refuse to provide service and will have to formulate a risk management policy.
Do You Own Crypto? AML Order Also Applies to Digital Currencies
For the first time, companies providing virtual currency services will be required to comply with Israeli anti-money laundering provisions. This follows an amendment to the Prohibition of Money Laundering Order that recently came into effect. The amendment will apply to financial asset service providers obligated to hold a license under the Control of Financial Services Law.
World’s Most Important Financial Institutions Seek Involvement in Crypto Field
While Israel’s banks are in no hurry to accept the blockchain industry and are avidly trying to keep their distance from cryptocurrencies, this is not the case elsewhere.
Recently, the major global securities, derivatives and financial trade associations sent a joint letter to the Bank for International Settlements (BIS), which develops banking supervision standards and criteria, to adopt regulation that will enable their involvement in the crypto asset sector.
Dual-Listed Companies – Israeli Legal Liability for Reporting
The Tel Aviv District Court recently handed down a ruling in the Ceragon Networks case. The ruling states that dual-listed companies may face exposure to lawsuits based on the liability rules under Israeli law.
Rules and Conditions for SPAC Issuances in Israel
Over the past year, raising capital through SPACs has become a hot trend on Wall Street. The Israel Securities Authority recently published the conditions and principles for SPACs to launch IPOs.
Israel Securities Authority: Tokens May Be Classified as Securities
The Israel Securities Authority recently established guidelines on when a cryptographic currency (token) is considered a security. The ISA determined that Kirobo tokens meet the definition of a security. This is primarily because the The Israel Securities believes investors would intend to purchase the tokens for financial purposes. In addition, these investors would anticipate their holdings to go up in value.
Decentralized Finance (DeFi) –The Future of Finance?
What is DeFi?
The first cryptocurrency, Bitcoin, is still the most well-known application of blockchain. However, this technology has since rapidly evolved and expanded in many other areas. The initial hope with Bitcoin was to make both money and payments decentralized and universally accessible. Although Bitcoin failed to live up to this promise, decentralized finance based on blockchain (“DeFi“), also called open finance, is a fledgling technology with potential. DeFi is operated by decentralized, permisionless (without any central authority) applications, called DApps, built on a blockchain network, most commonly Etherum. Visionaries see this as an open-source alternative to every financial service we use today: from savings, loans, and trades, to insurance and even more, all globally accessible.
Israel Securities Authority: Distributors May Be Liable for the Contents of a Prospectus
The Israeli Securities Authority has announced that distribution entities now may be liable for the contents of a prospectus. In a staff position paper published in late July, the ISA changed the rules of the game in the underwriting field by determining that a distributor, or an entity associated with a distributor, that purchases securities during an issuance and sells them within a short period of time (six months or less) shall be viewed by the ISA as an underwriter and shall be liable for the prospectus.
Israel: How to Identify Suspicious Use of Virtual Currencies
Prompted by the use of digital currencies to fund terror and other illegal activity, the Israel Money Laundering and Terror Financing Prohibition Authority has published a document aimed at assisting financial bodies and law enforcement agencies to identify improper activity in this field.
Libra 2.0 – From Global Currency to a Payment Method on Facebook’s Platform
After Libra, Facebook’s ambitious global digital currency venture, faced fierce resistance from regulators around the world, Facebook has announced “Libra 2.0.” The venture is set to undergo far-reaching changes that, on the one hand, will likely do away with regulatory concerns, but, on the other, will force Facebook to give up its original vision, i.e. a quick and simple transfer of digital currencies between accepted users worldwide without the need for a bank account.
Israel Securities Authority Promotes the Assimilation of Technological Innovation into the Israeli Capital Market
The ISA's commission for examining the regulation necessary for the advancement of digital markets published a report that focuses on platforms for the issuing, trading, and clearing of securities that make use of blockchain technology.
Dr. Zvi Gabbay and Andrey Yanai Op-ed: Israel Missing out on Digital Assets Revolution
Dr. Zvi Gabbay and Andrey Yanai from our Capital Markets Department published an opinion piece in Globes on the regulatory barriers Israel is imposing on the blockchain and digital assets revolution.
Transfer of Digital Currencies - The Dream and its Collapse
Regulatory resistance and legal proceedings by the US Securities and Exchange Commission are hindering the realization of one of the greatest promises of blockchain technology – the transfer of cryptographic currencies and assets between users without an intermediary.
New Restrictions on Hedge Funds in Israel
The Israel Securities Authority recently published a staff position that has material implications on the hedge fund sector in Israel and on the investor public, including the mode of incorporation of hedge funds and the limit on the number of investors in a fund.
An Important Milestone - First Supervised Security Token Offering
After a long wait, the US Securities and Exchange Commission (SEC) has permitted a startup company to raise funds from the general public through a supervised security token offering (STO) under Reg A+ regulations. Effectively, this is the first time a public STO was granted regulatory approval in the United States.
ICO 2.0 - The IEO Financing Model
With the initial coin offering (ICO) era considered over, it seems there is a new tool for financing - the initial exchange offering (IEO). This method of financing is more transparent and reliable for investors, entrepreneurs, and markets, providing partial solutions to the many disadvantages exposed in ICO financing.
Dual-Listed Companies: Updated Information
The Israel Securities Authority has published a position paper summarizing updated information about the processes for listing and delisting dual-listed companies on the Tel Aviv Stock Exchange and additional stock exchanges abroad. The position paper provides information both to dual-listed companies and companies considering dual listing.
Israeli Court Issues Principled Ruling on Banks’ Conduct with Monies Originating from Digital Currencies
The Tel Aviv District Court issued a ruling recently on a case concerning a bank’s conduct with funds whose source is digital currencies. The court expressly ruled that the bank’s blanket ban on the opening of bank accounts by clients engaging in digital currency activity is unreasonable.
ISA Makes First-Time Decision on How Cryptocurrency Asset Offerings Will Be Regulated
The committee appointed by the Israel Securities Authority (ISA) to examine regulation of cryptocurrency offerings to the public has published the outline of its regulatory policy in a final report submitted to the ISA chairman. The committee recommended focusing on regulatory models that offer structural flexibility.
Medigus Ltd. Completed a Nasdaq IPO
Barnea represented a group of US underwriters, led by H.C. Wainwright , LLC, in the process of submission of Medigus Ltd. of a prospectus for the Nasdaq listing. Medigus raised USD 7.5 million and will be traded on Nasdaq in parallel with its listing on the Tel Aviv Stock Exchange. Medigus Ltd is an Israel-based company active in the medical sector. It specializes in developing endoscopic procedures and devices.
Cellect Biotechnology Completed a Nasdaq IPO
On 31st July 2016 Cellect Biotechnology announced that it has completed its Nasdaq IPO, raising $8.4 million. Cellect Biotechnology will be traded on Nasdaq in parallel with its listing on the Tel Aviv Stock Exchange. Barnea represented a group of US underwriters, led by H.C. Wainwright , LLC, in the process of submission by Cellect Biotechnology of a prospectus for the Nasdaq listing. Cellect Biotechnology develops innovative technologies in the stem cells sphere.
Proposal to reconsider the activist regulatory model of the Israel Securities Authority
An article by Adv. Zvi Gabbay and Andrey Yanai on the proposal to reconsider the activist regulatory model of the Israel Securities Authority applied to the public companies, allowing them to enjoy wider business and legal maneuvering room.