The Authority for Combating Terror Financing and Money Laundering in Israel will likely impose new regulations for various digital financial products, including cryptocurrencies.
The government unit expressed hope that the legislation would reduce crypto’s criminal use and give more support to local investors.
Clear Standards for Cryptography
According to a recent Jerusalem Post report, Israel plans to improve transparency in the digital asset sector through the application of anti-terror banking rules for bitcoin and other altcoins.
The authorities used to have to expend significant resources to find fraud in areas that companies weren’t required to report. All crypto-related companies will have to report as banks after the new policy.
Shlomit Wagman, Director of Israel’s Money Laundering and Terror Financing Prohibition Authority – believes that the initiative will benefit Israel’s financial system.
It is likely that the systematic use of cryptocurrency in criminal activities will decline as terrorists and other criminal actors will be unable to conceal behind fake documents. This policy will also target criminals who use digital assets to commit crimes against humanity.
Small cryptocurrency companies will be able to offer greater security and confidence through the new rules. The reporting system promises to be easier to use and more modernized.
A series of reports will be required for transactions exceeding NIS 50,000. Transactions exceeding NIS 5,000 in countries that are high-risk for terrorist financing will need to be reported.
Wagman pointed out that around a third of all nations have adopted similar policies across the globe and Israel should not be left behind.
She concluded that “the application of regulations constitutes real progres for the Israeli economy and the Fintech sector and for improving financial competitive” in order to provide better services for the public.
Hamas was Crypto empowered?
Israel has taken numerous steps in recent months to end the use of digital currency for illicit activities.
In July, Israel’s National Bureau for Counter Terror Financing (NBCTF) ordered the seizure of 84 crypto addresses linked to Hamas, a militant group in the Palestinian region. Sources revealed that the wallets held more than $7.7million in digital currencies.
According to the seizure order it was clear that Tether (USDT), the terrorist organization’s most desired asset, was revealed. Other assets included Tron (TRX), Ether(ETH), Bitcoin (BTC), Tron (TRX), Ether(ETH), and even Dogecoin(DOGE).
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