According to reports, the Israeli government is now assessing various cryptocurrency enterprises with the purpose of issuing operational licences.
Israel is said to have implemented new cryptocurrency legislation in order to prevent criminal activities such as money laundering and terrorist funding.
On Sunday, Israel’s government implemented new anti-money laundering (AML) legislation, forcing local fintech firms and virtual currency service providers (VASP) to get an operational licence, according to local news agency Globes.
According to reports, the Israel Securities Authority, the Capital Markets, Insurance, and Savings Authority, the country’s independent financial regulator, is now assessing several VASPs that have requested for such a licence.
According to The Jerusalem Post, Shlomit Wagman, head of Israel’s Money Laundering and Terror Financing Prohibition Authority, said the new anti-money laundering legislation will assist the government restrict illicit use of digital assets while also giving the sector with greater support and credibility.
“The legislation’ implementation represents significant progress for the Israeli economy, the fintech sector, and financial competitiveness,” the official said.
This year, the Israeli government has been hard at work developing legislation to fight illegal cryptocurrency activity. Israel’s Finance Ministry proposed a regulation in July mandating people to make tax reports for crypto transactions over $61,000. Previously, Israel’s defence minister allegedly ordered security officials to confiscate cryptocurrency accounts suspected of being linked to Hamas’ violent wing.
Meanwhile, Israel’s central bank has been experimenting with a digital currency of its own. As previously reported, the Bank of Israel will issue a central bank digital currency in June 2021 as part of a pilot test of a digital shekel.
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