Israel will apply counter-terrorism banking rules to cryptocurrencies

Israel's Anti-Terrorism Financing and Money Laundering Authority will reportedly impose new regulations on various digital financial products, including cryptocurrencies.

The government unit expressed hope that the legislation will reduce the use of cryptocurrencies in criminal activities and ensure greater support for local investors.

Clear standards for cryptocurrencies

A recent Jerusalem Post report reads that Israel intends to increase clarity in the digital asset sector by applying counter-terrorism banking rules to bitcoin and altcoins.

Previously, authorities had to spend significant resources to uncover fraud in areas where companies weren't required to report all financial assets. After the new policy, however, all cryptocurrency-related companies will have to file reports like banks.

Shlomit Wagman, director of the Israeli Authority for the Prohibition of Money Laundering and Financing of Terrorism (IMPA), believes the initiative should benefit the country's financial network.

The systematic use of cryptocurrencies in criminal activities is expected to reach lower levels as terrorists and other malicious actors will find it more difficult to hide behind counterfeit documents. The policy will also focus on criminals who use digital assets when committing crimes against humanity.

The new rules will also help small cryptocurrency businesses provide greater confidence in the security of their services as reporting promises to be more accessible and modernized.

Additionally, some transactions greater than NIS 50.000 will always require a series of reports. Has Hamas empowered cryptocurrencies?

In countries considered to be at high risk for terrorist financing, transactions above 5.000 NIS will also require reporting.

Wagman noted that a third of nations around the world have already imposed similar policies and Israel shouldn't be left behind.

"Enforcement of the regulations constitutes real progress for the Israeli economy, the Fintech industry and for improving financial competition" to provide the public with better services, "he concluded.

Israel has launched numerous actions in recent months to stop the use of digital currencies in illegal activities.

For example, in July of this year, the Israeli National Office for the Financing of Terrorism ordered the confiscation of 84 cryptographic addresses considered to be linked to the Palestinian militant group - Hamas. Sources revealed that the wallets contained more than $ 7,7 million in digital currencies.

For the kidnapping order, it became clear that Tether (quotation USDT) was the terrorist organization's favorite asset. Others included Bitcoin (BTC), Tron (TRX), Ether (ETH) and even the Dogecoin (DOGE) "meme coin".