Israel has reportedly introduced new rules related to the cryptocurrency industry to combat illegal activities such as money laundering and terrorist financing.
On Sunday, the Israeli government passed new anti-money laundering (AML) regulations requiring local fintech companies and virtual currency service providers (VASPs) to obtain an operating license, the local news agency Globes reported.
The Israel Securities Authority and the Capital Markets, Insurance and Savings Authority, the country’s independent financial regulator, are reportedly in the process of reviewing several VASPs that have applied for such a license.
Shlomit Wagman, director of Israel’s Anti-Money Laundering and Financing of Terrorism Authority, said the new anti-money laundering rules would help the country curb the criminal use of digital assets while providing greater support and legitimacy to the industry, the Jerusalem Post reported.
“The implementation of the rules represents real progress for the Israeli economy and financial technology industry, as well as for improving financial competition,” the official said.
This year, the Israeli government is actively working on regulations to combat illegal activities related to cryptocurrency. In July, the Israeli Ministry of Finance proposed a law requiring residents to file a tax return when purchasing cryptocurrencies for more than $ 61,000. Earlier, it was reported that Israel’s defense minister had authorized security forces to confiscate cryptographic accounts believed to be linked to Hamas’ military wing.
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Meanwhile, Israel’s central bank is testing its own digital currency. As previously reported, the Bank of Israel has issued a central bank’s digital currency through beta testing of the digital shekel since June 2021.