In an announcement made by the Authority of Combating Terror Finance and Money Laundering, a new set of regulations have been imposed in Israel to protect investors’ stake in the crypto market.
According to Authority director Schlomit Wegman, the application of the new set of laws will ensure that crypto and fintech industries maintain their decorum and assist in establishing clear orders and standards when it comes to crypto trading in the region.
Israel boosts its crypto regulatory infrastructure
As per Wegman, the new set of regulations will help crypto organizations by encouraging more users to invest their stake in crypto and boosting customers’ waning interest in the sector. Due to a lack of proper regulatory administration, Israel has encountered multiple cases of money laundering where illegal crypto transfers were made to dubious organizations.
As per Globes, the government’s new Anti Money Laundering regulations (AML) enforced on Sunday, now requires the local fintech companies and virtual currency service providers to obtain an operating license.
With the implementation of the new regulatory framework, crypto companies operating in Israel will now be required to submit comprehensive reports like banks. The authorities will adopt detailed customer identification standards to ensure accurate background analysis and combat illegal money transfers along the line.
Israel has also collaborated with the US Department of Treasury to combat constant ransomware attacks that have been a source of concern for the nation.
Recently, Israel’s National Bureau for Counter Terror has confiscated cryptocurrency that was being transferred to Hamas’ military wing. The new regulatory framework intends to tighten control over crypto exchanges operating in Israel and protect illegal fund transfer through robust KYC integration.
Israeli authorities have been constantly working towards putting a lid on rampant illicit activities in the region. Recently, the Israeli authorities have proposed a new bill that requires the residents of the country to file tax declarations on crypto purchases above $60,000.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Like what you see? Subscribe for updates.