Israel reportedly adopted new AML rules for crypto

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Israel has reportedly enacted new regulations related to the cryptocurrency industry in order to combat illegal activities such as money laundering and terrorist financing.

The government of Israel enforced new anti-money laundering (AML) regulations on Sunday, requiring local financial technology companies and virtual currency service providers (VASPs) to obtain a business license, the company reported. local Globes news agency.

The Israel Securities Authority, the Capital Markets, Insurance and Savings Authority, the country’s independent financial regulator, is reportedly currently reviewing various VASPs that have requested such Licence.

Shlomit Wegman, director of the Israel Money Laundering and Terrorist Financing Prohibition Authority (IMPA), said new anti-money laundering rules would help country fight criminal use digital assets while providing the industry with more support and legitimacy, the Jerusalem Post reported.

“Enforcement is a real step forward for the Israeli economy, the FinTech industry and for improving financial competition,” the official said.

The Israeli government has been actively working on regulations to tackle illicit crypto-related activity this year. In July, Israel’s finance ministry proposed a law requiring residents to file tax returns for crypto purchases over $ 61,000. Previously, Israel’s defense minister reportedly authorized the security forces to seize crypto accounts believed to be linked to the militant wing of Hamas.

Related: FATF Includes DeFi in Guidance for Crypto Service Providers

Meanwhile, Israel’s central bank has been experimenting with its own digital currency. As previously reported, the Bank of Israel issued a central bank digital currency via a digital shekel pilot test from June 2021.

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