The Israel Securities Authority (ISA) announced on Monday it is establishing a regulatory Innovation Fintech Hub. According to the ISA, this new initiative is aimed at promoting common discourse between the organization and relevant players in fintech. The organization also encourages fintech companies and entrepreneurs to engage the ISA in order to learn and understand the relevant regulatory framework and to adjust their activity to meet regulation standards, through guidance of the ISA’s staff.
“The past decade has been accompanied by innovative technological breakthroughs designed to improve and streamline the services in the financial industry. The volume of investments in Fintech has seen tremendous growth, reaching tens of billions of USD yearly. It is estimated that hundreds of Fintech companies are operating in Israel alone. The ISA sees great potential in the innovative field of Fintech and its ability to revolutionize the financial markets in Israel and contribute to the Israeli economy and capital markets.”
The ISA then revealed it sees great importance in expanding its knowledge and understanding of this Industry, with the intention of avoiding future regulatory obstacles and inappropriate regulatory burden. The ISA also views this as an opportunity to assess whether any adjustments to existing regulation are required. The organization added:
“We invite any relevant players in the field of Fintech to engage us with any thoughts or comments on this issue, including (but not limited to) the method and tools for implementing the aforementioned Innovation Hub.”