The Tel Aviv Stock Exchange (TASE) has made a draft for approval of the extension of cryptocurrency trading operations to non-banking members available for public feedback.

In a TASE first, the planned structure would allow consumers to deposit fiat money intended for investments in digital assets, according to a Feb. 27 release.

If the plan is adopted, non-banking members will serve as authorized suppliers of crypto trading and custody services. The “omnibus account” will serve as a middleman for any cryptocurrency trading transactions involving customer money.

Clients will also be able to withdraw money made from the sale of cryptocurrency, however the procedure is a little complicated. The notification states that this was done to reduce risks and improve consumer protection.

This is another another milestone in the evolution of the Israeli capital market, which aspires to promote innovation and competition while reducing risks and safeguarding consumers.

The plan will be forwarded to the TASE Board of Directors for approval once comments have been made, although no deadline was given.

The Tel Aviv Stock Exchange’s plans to trade cryptocurrencies may not succeed, however.

As a result of a planned bill that would categorize crypto assets as securities, the legal landscape in Israel is growing more challenging for the industry. The Israeli Securities Authority (ISA) put up a framework for governing digital assets in January, classifying them as securities.

According to Ilan Sterk, CEO of Israeli cryptocurrency trading and custody company Altshuler Shaham Horizon, the reclassification is “changing everything here” and “it will destroy the business,” he told Cointelegraph in February.

According to the TASE release, the Israeli government now “imposes regulation on financial operations or services in digital assets analogous to that already applied to non-digital assets.”

TASE remained optimistic, though, and said in its conclusion that it “believes that the alignment of local legislation with international regulation would attract more foreign investments and foreign investors into the Israeli market.”

The Capital Markets Authority granted its first license to Bits of Gold, an Israeli cryptocurrency exchange, in September.