The country’s main goal is to stop the use of crypto assets in the illegal money transfer. In the latest Israeli media reports it is stated that cryptocurrency assets will now fail under strict anti-money laundering rules of Israel, which is another country’s step in their policy of tightening the grip around unlawful crypto activities under its jurisdiction.

According to the article by The Jerusalem Post, Israeli Authority for Combating Terror Financing and Money Laundering has significantly increased their efforts in fighting with the money laundering throughout the digital assets.

The authority will monitor not only mainstream assets like Bitcoin and Ethereum, but Fintech and other financial products as well – in order to make the innovative digital financial tools secure for transactions. Shlomit Wegman, the Director of Israeli Regulator, trusts that the new rules will massively improve security of legal cryptocurrency users.

“The application of the regulations constitutes real progress for the Israeli economy, the Fintech industry, and for improving financial competition to provide the public better services. The new regulations are designed to step into that space to establish order and clear standards,” Wegman said.

The regulations are based on the standards established by the Financial Action Task Force (FATF). Most of the countries around the world have started applying the new FATF rules for digital transactions in their respective regions.

The crypto market saw substantial growth in 2021 as the overall market capitalization jumped by more than 250% within the first 10 months. With rising popularity, the use of digital assets in illegal financial transactions has also increased. To counter that, many European and Asian countries have introduced strict KYC and AML rules for the detection and prevention of cryptocurrencies in illegal activities.

Israel is one of the fastest-developing crypto-hubs in the whole world. Rising popularity of digital assets in the region, the authorities increased their efforts in providing security to Israeli crypto-ecosystem.

Our editorial office as always warmly salutes any steps towards development of cryptocurrency market all over the globe. We will review Israeli market for possible decisions which may be useful to our client, however, at the moment we recommend all entrepreneurs interested in crypto-asset activities to take a look at Lithuanian Crypto License – in case of interest feel free to contact us to find out more.