The Tel Aviv Stock Exchange (TASE) issued a proposal to allow password trading to be extended to non-bank members for public consultation.

In TASE First, a statement on Feb. 27 said the proposed structure would allow users to deposit currency in circulation that is specific to project investment digital assets.

If the proposal is approved, non-bank team members will serve as service providers for password trading and hosting services. Customer assets will be placed in a "comprehensive account" as an intermediary for password-themed activities.

It will also allow customers to obtain funds from the sale of passwords, but the process is somewhat intertwined. According to publicity, this is also done in order to reduce risks and improve the protection of consumers' rights and interests.

This is another step in the development of the Israeli financial market, which is committed to encouraging innovation and market competition, while reducing risks and protecting customers.

Once a proposal has been submitted, the proposal will be sent to the TASE shareholders' meeting for approval, but no timetable can be provided.

But it may not be so successful for the Tel Aviv Stock Exchange and password trading ambitions.

The outlook for Israel's regulatory market is becoming increasingly gloomy for this area because of a proposed legal plan to classify encrypted assets as securities. In January of this year, the Israeli Securities Management Service (ISA) proposed a framework for regulating digital assets, placing them under the evil forces of securities.

In February, Elenstek, CEO of Altshuler Sm Horizon, an Israeli password trading and agency operator, told Cointelegraph that the reclassification "affected everything here", adding, "it will wipe out the industry."

According to the TASE announcement, Israel's current regulatory approach is to "regulate financial activities or services in digital assets, similar to those that can be used to regulate non-digital assets at this stage."

However, TASE remains confident and achieves the following results:

TASE firmly believes that the close combination of local and foreign regulation will attract more foreign investment and foreign investors to the Israeli sales market.

In September of this year, Bits of Gold, the Israeli password exchange, became the first company in the country to obtain a license from the Asset Market Supervision Bureau.