ISA — Securities regulation, crypto oversight

CMISA — Financial Asset Service Provider licensing

Israel Money Laundering Prohibition Authority — AML/CFT compliance

**Supervision of Financial Services (Regulated Financial Services) Law**: Core licensing framework (no direct URL in results; see CMA site via [1][4][5]).

**Exchanges**: Require a **license as a "service provided in a financial asset"** under the Supervision of Financial Services Law from the CMA. Recent ISA amendments (August 2024) allow non-bank Tel Aviv Stock Exchange (TASE) members (e.g., brokerages) to offer trading in approved cryptocurrencies like Bitcoin and Ethereum via licensed exchanges.[1][2][4][5]

**Custody Providers**: Need the same **CMA financial asset service license** for management or custody of virtual currencies; Israeli Trust Act provisions may also apply. Transactions must route through licensed entities in the "closed garden" model.[1][2][5]

**Payment Processors**: Not explicitly detailed for crypto; BOI may regulate stablecoins/payment tokens if they become significant means of payment, focusing on financial stability. General VASP activities fall under CMA/Financial Services Law.[4][5]

Prepare documents: company registration, business plan, proof of capital, directors' details, compliance handbook, IT/security policies, risk models.[3]

Submit to CMA (or relevant authority for VASPs/exchanges/custody).[1][3][4]

Undergo verification/review (8-14 weeks, depending on completeness).[3]

Receive decision; ongoing obligations include real-time monitoring and regulator engagement.[3]

ISA amendment (Aug 2024): https://practiceguides.chambers.com/practice-guides/blockchain-2025/israel/trends-and-developments [2]

IMPA AML rules: Integrated via [2][4]

BOI stablecoin papers: Referenced in [5]

**BOI Principles for Stablecoin Activity** (2023): Core document recommending legislation; Hebrew PDF at https://boi.org.il/media/aoxh4ezf/%D7%9E%D7%A1%D7%9E%D7%A9-%D7%A2%D7%A7%D7%A8%D7%95%D7%A0%D7%95%D7%AA-%D7%9C%D7%A4%D7%A2%D7%99%D7%9C%D7%95%D7%AA-%D7%9E%D7%98%D7%91%D7%A2%D7%95%D7%AA-%D7%99%D7%A6%D7%99%D7%91%D7%99%D7%9D-%D7%9E%D7%AA%D7%95%D7%A8%D7%92%D7%9D-%D7%9C%D7%90%D7%A0%D7%92%D7%9C%D7%99%D7%AA-002.pdf[2].

No dedicated stablecoin law; ongoing efforts via National Crypto Strategy Committee (interim report 2025, potential 2026 legislation) and 2024 Financial Services Law amendments enabling crypto oversight by BOI, ISA, and others[3][4][5].

ISA proposed Securities Law amendments for token classification (pending)[4].

For individuals: Israeli citizenship or residency, legal majority, no bankruptcy declaration, and no convictions for offenses unfit for financial handling.[4]

For corporations: No requirement to dissolve and minimum specified equity.[4]

**Israeli Trust Act**: Potentially applicable to custodians. https://barlaw.co.il/crypto-custody-services-and-regulation-a-review/[1]