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6 Aug 2026 Last logged Bybit Cold Wallet Compromise, February 2025
Jurisdiction · · 1 min read · 111 words ·As of

Crypto Rules in Israel

Israel licenses financial asset service providers, treats crypto as an asset for tax, and has issued repeated guidance on banks servicing crypto-derived funds.

Regulator(s) Israel Securities Authority (ISA), Capital Market Authority, and the Bank of Israel

Conisec Staff
Written by Conisec Staff Editorial standards Newsroom
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At a glance

IS TRADING LEGAL
Yes. Holding and trading are lawful; crypto is not legal tender.
LICENSING REGIME
Providers of services in financial assets require a licence under the Supervision of Financial Services (Regulated Financial Services) Law, supervised by the Capital Market Authority.
TAX TREATMENT
Crypto-assets are generally treated as property rather than currency, bringing disposals into capital gains tax.
REPORTING DUTIES
Licensed providers are subject to AML obligations; banks have their own supervisory expectations when accepting crypto-derived funds.
MOST RECENT CHANGE
A recurring practical issue has been access to banking for crypto-derived proceeds, which has been the subject of guidance and litigation rather than of a single rule change.

Licensed activity, contested banking access

Israel brings crypto service provision inside a licensing regime for financial asset services, supervised by the Capital Market Authority, while the Securities Authority addresses whether particular tokens are securities. For tax, the settled position treats crypto-assets as property rather than as currency, so disposals are capital events.

The friction is at the bank, not the exchange

The distinctive feature of the Israeli position has been less about whether crypto activity is permitted and more about whether banks will accept the proceeds. That question has been worked out through supervisory guidance and the courts over several years, which is why any summary of “the rules” here is incomplete without it.

Sources

  1. Israel Securities Authority, Digital assets regulation (1 Jan 2026)
  2. Bank of Israel, Banking and crypto-derived funds (1 Jan 2026)

Not legal or tax advice. This is a summary of published rules, not legal or tax advice. Rules change; check the primary sources linked above.

Last reviewed by Conisec Staff. Review cadence: Quarterly.

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