The Israeli government is currently evaluating multiple crypto firms to issue operating licenses.
In order to counter illegal actions such as money laundering and terrorism financing, Israel has imposed new cryptocurrency regulations.
According to local news agency Globes, the Israeli government implemented new anti-money laundering (AML) regulations on Sunday, needing local fintech companies and virtual currency service providers (VASP) to acquire an operating license.
The Israel Securities Authority, also known as the Capital Markets, Insurance, and Savings Authority, the country's independent financial regulator, is subsequently analysing multiple VASPs that have applied for the license.
According to Shlomit Wagman, director of the Israel Money Laundering and Terror Financing Prohibition Authority, the new AML rules will help the nation restrict criminal use of digital assets while somehow providing the industry with more assistance and legitimacy, The Jerusalem Post said.
“The application of the regulations constitutes real progress for the Israeli economy, the fintech industry and for improving financial competition,” the officer said.
This year, the Israeli government is constantly working on regulatory frameworks to counter illicit crypto-related actions. Israel's Ministry of Finance proposed law in July which would require residents to file tax declarations for cryptocurrency purchases exceeding $61,000. Initially, the Israeli defence minister supposedly authorised security forces to seize crypto accounts considered to be linked to Hamas's militant wing.
Meanwhile, Israel's central bank has been testing with its own digital currency. The Bank of Israel released a central bank digital currency through a pilot test of a digital shekel in June 2021, as reported earlier.