In order to tackle criminal activities such as money laundering and terrorism funding, Israel is said to have implemented new cryptocurrency legislation.
According to local news agency Globes, Israel’s government implemented new anti-money laundering (AML) legislation on Sunday. Forcing local fintech firms and virtual currency service providers (VASPs) to get an operational licence.
The Israel Securities Authority, which is also famous as the Capital Markets, Insurance and Savings Authority, is apparently assessing numerous VASPs that have sought such a licence.
According to The Jerusalem Post, Shlomit Wagman, director of the Israel Money Laundering and Terrorism Financing Prohibition Authority, the new AML laws would assist the government to restrict the illicit use of digital assets while also offering additional support and credibility to the industry.
Enhancing financial competitiveness
The official stated, “The implementation of the legislation represents genuine progress for the Israeli economy. As well, the fintech industry, and enhancing financial competitiveness.”
This year, the Israeli government has been working hard on rules to curb the criminal crypto activity. Israel’s Ministry of Finance proposed regulation in July. That would require people to make tax reports for cryptocurrency transactions over $61,000. Previously, the Israeli defence minister allegedly gave security authorities permission to seize crypto accounts linked to Hamas’ terrorist branch.
Meanwhile, Israel’s central bank is experimenting with a digital currency of its own. Relatively, in June 2021, the Bank of Israel launched a pilot test of a digital shekel. As a central bank digital currency.