The Bank of Israel, the country's central bank, has published its proposed rules to regulate stablecoins.
The agency said the recommendations focus on risk management, prudential requirements, and consumer protection.
The document proposes 100% reserve requirements for stablecoins, meaning that stablecoin issuers in the country will have to maintain reserves in a way to be equal to the amount of crypto in circulation.
- The recommendations also include a requirement for a license for the stablecoin issuers to operate in the country.
- If approved, the new rules will also divide the supervisory responsibilities among several regulators.
- The bank will receive public comment by March 15 and then suggest legislation to the Israeli government by making the necessary revisions.
Hong Kong also plans to regulate stablecoins this year.
