Long ago, the Israeli government has paid attention to the blockchain and cryptocurrency exchange. At the beginning of 2017, the state tax service of the country declared that crypto-instruments are equal to assets (but not to the currency and the securities) and can be used for a work with the payment of VAT and capital gains tax. Cryptocurrency exchanges and exchangers often consider Israel as a promising jurisdiction outside the European Union, constantly making the requirements for the crypto-field more rigorous.
The government and the local regulator are preparing draft laws regulating the use, exchange, and circulation of non-fiat currencies, but so far they consider Bitcoin and other cryptocurrencies to be a property/asset, but not a payment instrument. It is expected that ICO and cryptobusiness will be fully introduced into the Israeli legal field - with a registration of licenses for cryptocurrency, etc. In summer of 2018, a law on financial services vendors entered into force in the country, which included provisions for digital assets and firms engaged in their exchange.
In compliance with the updated standard, exchangers and exchanges providing an access to cryptocurrencies must comply with the requirements for money laundering countering:
Many firms from the crypto-sector work legally in Israel. “Prifinance” consulting company will help to develop a legitimate, promising business, select a corporate scheme and issue a license for the cryptocurrencies exchange.
If you want to document a license for the cryptocurrency exchange, our experts will provide legal, technical and organizational support and develop an action strategy.
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