Israeli Finance Ministry Publishes Crypto Money Laundering Law Draft

28 May, AtoZ MarketsIt appears that Israel has taken another step in regards to the cryptocurrency regulation. Israeli’s finance ministry has published the draft legislation in regards to the money laundering related to the cryptocurrency. According to the online sources, the draft was signed by the finance minister Moshe Kahlon.

Israeli Finance Ministry Publishes Crypto Money Laundering Law Draft

It is expected that the new law that will regulate financial service providers will come into effect on the first of June. The new law will include the provision for digital assets providers for the first time. There is also a draft notice that comes with the law:

 “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.”

There have been some cases where Israeli banks have refused to accept the cryptocurrency-related funds. On two such occasions, those banks had to accept the money following the court decision. 

This February, a company Bits of Gold has won a similar case. The risk manager of this company, Yael Naaman has stated that the Israel Anti-Money Laundering Authority has reacted to the situation quickly. 

Positive news for crypto community?

The crypto market community has perceived this news as positive. The head of the Israeli Bitcoin Association, Manny Rosenfield, has stated:

 “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.”

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