Israel has apparently passed new regulations regarding cryptocurrency in an effort to combat illegal activities like money laundering and terrorist financing.
According to local news agency Globes, the government of Israel has implemented new Anti-Money Laundering regulations (AML) on Sunday. This required local fintech companies as well as virtual currency service providers (VASPs) to obtain an operating licence.
According to reports, the Israel Securities Authority, also known as the Capital Markets, Insurance and Savings Authority, is currently reviewing applications for licenses from VASPs.
Shlomit Wagman is the director of the Israel Money Laundering and Terror Financing Prohibition Authority. According to The Jerusalem Post, the new AML rules will help curb the criminal use of digital assets and provide the industry with more legitimacy.
The official stated that the regulation’s application was a significant step forward for the Israeli economy, fintech industry, and financial competition.
This year, the Israeli government has been working hard to develop regulations to stop illicit crypto-related activities. The Ministry of Finance in Israel proposed a law that required residents to file tax declarations when they purchase crypto above $61,000. The Israeli defense minister had previously authorized security forces to seize crypto accounts that were believed to be linked to Hamas’ militant wing.
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Israel’s central banking has been testing its own digital currency in the interim. As reported previously, the Bank of Israel has issued its own digital currency as a pilot project using a digital shekel.