The Israeli government has announced, through the Israeli Securities Authority panel, that it will begin scrutinizing ICOs more carefully and may potentially regulate them. The Securities Authority head, Prof. Shmuel Hauser, announced the formation of a committee to evaluate whether ICOs fall within the definition of a security as established by the Israeli government.
The committee has been tasked with making an analysis of cryptocurrency regulations in the other countries in order to evaluate the legitimacy of Bitcoin. The committee’s mandate is to create a new regulatory policies which encourage alternative funding channels and technological innovation while at the same time protecting investors from unsupervised investments.
The Israeli announcement brings some additional threats of government control in Israel, where many ICOs have been started. The announcement comes after similar scrutiny announced by the SEC in response to the DAO token sale.