The Bank of Israel issued Principles for Regulating Stablecoin Activity in Israel, which outlines the central bank's guidelines for monitoring crypto tied to the value of other assets such as the U.S. dollar, crypto media outlet CoinDesk reported on February 23.

The central bank suggests forcing stablecoin issuers to keep reserves equal to the amount of cryptocurrency in circulation, covering "100% of its liabilities to coin holders." The advice is consistent with other jurisdictions, like as Hong Kong, which intends to regulate asset-backed stablecoins by June of this year.

To improve efficiency, the ideas include spreading supervisory tasks among different regulators. The central bank suggests that stablecoin issuers be required to get operating licenses. It goes on to say that issuers of bigger stablecoins of "systemic relevance" should be regulated by the Banking Supervision Department, while others should be overseen by the Capital Market Authority.

The new guidelines will be accessible for public discussion until March 15, at which point the bank will make the necessary revisions and suggest legislation to the government.

Source: COINDESK