Israel has been a crypto haven for years. Its relatively small population and its proximity to the European Union have made it an ideal place for innovators in blockchain, cryptocurrency, and ICOs. In April 2019, they appear to be taking steps towards regulation with new AML rules that reflect changes from 2018 brought on by increased interest in these areas.
In a sign of the growing importance of cryptocurrencies, Israel’s central bank has adopted new AML rules that will require crypto exchanges to disclose information on their customers and track transactions. It is unclear if these regulations were implemented as a result of increasing attention from regulators around the world or just due to increased interest in cryptocurrencies over recent months.,
Israel reportedly adopted new AML rules for cryptocurrency. The new regulations are expected to go into effect on January 1, 2020.
According to reports, Israel has passed new cryptocurrency legislation in order to prevent criminal activities such as money laundering and terrorist funding.
According to local news agency Globes, Israel’s government implemented new anti-money laundering (AML) legislation on Sunday, forcing local fintech enterprises and virtual currency service providers (VASP) to get an operational license.
The Israel Securities Authority, also known as the Capital Markets, Insurance and Savings Authority, is apparently assessing numerous VASPs that have requested for such a license.
According to The Jerusalem Post, Shlomit Wagman, head of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, the new AML laws will assist the government restrict illicit use of digital assets while also giving the business with greater support and credibility.
The official said, “The implementation of the legislation represents genuine progress for the Israeli economy, the fintech sector, and enhancing financial competitiveness.”
This year, the Israeli government has been working hard on rules to curb criminal crypto activity. Israel’s Ministry of Finance proposed a regulation in July that would require people to make tax reports for cryptocurrency transactions over $61,000. Previously, the Israeli defense minister allegedly gave security authorities permission to confiscate crypto accounts linked to Hamas’ terrorist branch.
Related: The FATF has included DeFi in its crypto service provider advice.
Meanwhile, Israel’s central bank has been experimenting with a digital currency of its own. The Bank of Israel launched a central bank digital currency via a pilot test of a digital shekel in June 2021, as previously announced.
Israel has reportedly adopted new AML rules for cryptocurrency. The new rules will require exchanges and custodians to comply with stricter KYC and AML policies. Reference: is crypto the future.
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