In the third week of September 2022, the first-ever permission to provide crypto services in Israel was granted to a crypto exchange company based in the country, allowing it to interact and collaborate with native banks.
The Capital Market Authority gave access to Bits of Gold, a crypto exchange company established in Israel, to authorize crypto transactions. This move was made known via a post made on social media by the crypto company on the 18th of September 2022.
This permission will enable the crypto exchange company to employ their safe and secure custody “Bits of Gold wallet” to save digital assets. The “Bits of Gold Wallet” is a project the company has been working on for some time, and now they finally get a chance to utilize it for transactions. One of the company’s services will also allow banks and other money-related entities to access their digital resources.
Israeli Previous Crypto Restriction Moves And The Breakthrough
The Israeli governing body had laid limitations on financial transactions within the nation in its attempt to battle fraudulent operations and trigger a positive movement in digital commerce.
Even with this positive motion, there has not been any impressive progress towards the institutional commencement, as blockchain and crypto services have been experiencing opposing treatment with the country before the recent approval, considering AML (Anti-Money Laundering) problems.
Taxation Laws are yet another hindrance to Israel’s institutional acceptance. Based on analysis from Coincub, a Cryptanalysis company, on the 8th of September, Israel was the third to the last country for taxation laws relating to cryptocurrency.
Leumi, an Israeli native bank, rejected the Bits of Gold services owing to the court ruling. It claims that adopting the crypto exchange company and Bitcoins means of transactions will not allow it to abide by the requirements of the Anti-Money Laundering body.
The Breakthrough And Bits Of Gold Mission
However, in 2019, the stand of the supreme court was altered and said Leumi doesn’t have the right to ban Bit of Gold’s account owing to moderation issues. This statement set an example for other Crypto companies.
The Israeli government’s adoption of the new rules of the Anti-Money Laundering body paved the way for collaboration among crypto companies and native banks. The move also necessitated the acquisition of a license by crypto firms. Currently, firms who apply for licensure get a temporary one to continue operation, pending the availability of the permanent one.
Bits of Gold released a general statement, mentioning that its licensure in the country aligns with its motive of offering easy accessibility to the universe of digital assets safely and seamlessly.