Israel passed a new AML law for crypto

Israel has reportedly passed a new set of regulations to combat illegal activities, including terrorism financing and money laundering.
Israel has reportedly passed a new set of regulations to combat illegal activities, including terrorism financing and money laundering.

Israel, the country known for having some of the holiest sites in the world, is diving deeper into the ocean of crypto. It has reportedly passed a new set of regulations to combat illegal activities, including terrorism financing and money laundering.

As per the report by a local news agency Globes, the government on Sunday has passed a new Anti-Money Laundering (AML) law that enforces virtual currency service providers (VASPs) and local fintech companies to apply for the operating license.

Several agencies have already applied for the license and the Israel Securities Authority, the Capital Markets, Insurance and Savings Authority, the country’s independent financial regulator, is reportedly reviewing these VASPs.

Israel aims to improve financial competition

The director of Israel Money Laundering and Terror Financing Prohibition Authority (IMPA), Shlomit Wegman, said that the fresh AML regulations aim to help Israel curb criminal usage of virtual assets. He added that it would also provide the crypto industry with legitimacy and support. The official stated:

“The application of the regulations constitutes real progress for the Israeli economy, the fintech industry, and for improving financial competition.”

The government of Israel is working hard to regulate the crypto in the country to fight against illicit activities as earlier this year in June, the Ministry of Finance also came up with a law requiring residents to apply for tax declarations for any crypto-related purchase above $61,000. 

Before this, the defense minister of the country authorized security forces to pause all the crypto accounts that are believed to be tied to the militant wing of Hamas.

Along with that, the central bank of the country is also trying its hands-on blockchain technology to bring its own digital currency. As TheCoinRise reported, Cryptocurrency lender Celsius Network acquired the country’s famous cybersecurity firm GK8. The Bank of Israel has also issued a central bank digital currency (CBDC) in June 2021 through a pilot test.

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