In November 2021, the Israeli authorities introduced mandatory licensing of crypto companies. Blockchain startups and bitcoin exchanges must register with the Capital Markets Authority database to operate legally on the domestic market.
The first crypto exchange received a license from the Israeli authorities. The Bits of Gold platform will be able to provide custody services for digital currencies and process transactions with bitcoin and other virtual coins.
Israeli banks can connect to Bits of Gold services, which will allow you to replenish wallets and withdraw funds through these financial structures.
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The Bits of Gold statement notes that the Israeli authorities are on the path of digitalization of the payment infrastructure. However, the institutional adoption of cryptocurrencies is still at a weak pace, because the government of the country is tightening control over the movement of funds.
In addition, Israel has a heavy tax regime for crypto traders. The tax on income from transactions with digital assets in the country reaches 33%, which causes dissatisfaction among investors.