Israel is imposing new regulations related to the cryptocurrency industry in order to counter illegal activities such a money laundering and terrorism financing.
The government imposed new Anti-Money Laundering regulations requiring local fintech companies and virtual currency service providers to obtain an operating license.
The Israel Securities Authority, the Capital Markets, Insurance and Savings Authority, the country’s independent financial regulator, is now in the process of reviewing various VASPs that have applied for such a license.
The director of the Israel Money Laundering and Terror Financing Prohibition Authority, said that the new AML rules would help the country control criminals usage of digital assets while also providing the industry with more help and legitimacy
The Israeli government has been keenly working on regulations to combat illicit activities related to crypto this year. In July, Israel’s Ministry of Finance proposed a law requiring residents to file tax declarations for crypto purchases above $61,000.
