Israel Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

Bank of Israel, National Crypto Strategy Committee

Risk Level

medium

Primary Legislation

Financial Asset Service Providers Regulation Law (2023), ISA proposed amendments to the Israeli Securities Law to categorize tokens (e.g., ISA committee evaluating decentralized offerings; ongoing stablecoin regulation, Supervision of Financial Services (Regulated Financial Services) Law: Core licen, No dedicated stablecoin law; ongoing efforts via National Crypto Strategy Commit, ISA proposed Securities Law amendments for token classification (pending)., No comprehensive crypto-specific law yet; reforms sought via National Crypto Str, Proposed ISA amendments to Securities Law: To regulate digital assets by categor, No full dedicated crypto law as of 2025-2026 sources; regulation evolves via exi

Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

25% capital gains tax on crypto; Israel Tax Authority treats crypto as property. Gains from selling, exchanging, or disposing of cryptocurrencies are taxed at 25% for individual investors, calculated as the difference between acquisition cost and sale proceeds (using fair market value at receipt for mining).. Losses are recognized as capital losses, offsettable against gains, with records required on tax returns.. This treatment stems from ITA circulars since 2014, viewing crypto as an "asset" under the Income Tax Ordinance (New Version), 1961.. For individuals holding as investments: Capital gains tax at 25%.

Key Facts

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