Israel Publishes Draft Law Concerning Money Laundering and Cryptocurrency

Israel has taken a step forward in cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term with the country's finance ministry publishing draft legislation concerning money laundering via cryptocurrency, according to local news source Globes. The draft was signed by finance minister Moshe Kahlon.

Background

On June 1, a new law covering financial service providers will come into effect. It will include a provision for digital asset providers for the first time. The draft notice is an addition to this new law.

The draft notice explains: "The definition of a service in connection with financial assets is being expanded beyond currency services, to includes all activities and services performed by a business in connection with financial assets that does not include credit."

"Among the financial assets added to the definition is a virtual currency, with the intention of allowing supervision of financial services other than tangible assets or standard financial means, in a field that has been developing in recent years."

The cryptocurrency community has received this news with optimism, according to the report. Manny Rosenfield, head of the Israeli Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Association, said: "On many of the occasions in which banks have refused to accept money that originated with cryptocurrency, we met with the statement that the field is not regulated. The new order will regulatory certainty for those involved in the field, and will define rules that are permitted and forbidden, which will enable banks and financial institutions to know who is compliant with the law, and whose money they can safely receive. The union gave a proposal on the subject to the Israel Anti-Money Laundering Authority several weeks ago, and we welcome the regulator's quick action to allow those involved in the field to operate."

There have been many cases of Israeli banks refusing to accept cryptocurrency-related money, and on two occasions recently those banks were forced to accept the money after being taken to court.

A company that won a similar case in February of this year is called Bits of Gold. This company's risk manager, Yael Naaman, commented on the draft law: "The Israel Anti-Money Laundering Authority has acted quickly and we hope that its move will bring order to the market. However, unfortunately, the authority chose not to specify that remote user identification technologies, including biometric face recognition technology, could be used to identify suspicious operations. This would enable the identification of a customer without requiring physical access. We call on the authority to add this to the final order."