TASE Opens Crypto Trading to Nonbank Members

TEL AVIV, IL – The Tel Aviv Stock Exchange (TASE) announced Monday it would allow non-banking members to trade in cryptocurrency. The decision comes in response to the “rapid development of the cryptocurrency sector” and “growing demand” from the Israeli public to trade and transfer crypto outside traditional banking institutions.

As the World Bank describes it, a non-banking financial institution (NBFI) is a bank that is not fully licensed and therefore does not accept public deposits. However, an NBFI facilitates “alternative financial services, such as investment [...] risk pooling, financial consulting, brokering, money transmission, and check cashing.” 

TASE said the decision is a response to the “turmoils over the past year,” showing the need for more regulation as consumers were hurt by fraud in the crypto markets. Under the new measure, nonbank members can trade crypto on the exchange through licensed crypto trading platforms.

The exchange’s press release explained that “the proposed structure will enable the customer to deposit [fiat money] that are designated for investment in [cryptocurrency] and withdraw monies originating from those currencies.”