Israel — crypto regulation

Status: legal · Last reviewed 2026-11-05

Crypto is legal but not legal tender. Service providers are licensed by the Capital Market, Insurance and Savings Authority under the Supervision of Financial Services (Regulated Financial Services) Law 2016. In Apr 2026 the Authority cleared Bits of Gold's shekel stablecoin BILS, the first regulated shekel stablecoin; a draft Stablecoin Issuance Bill (Jun 2026) would license issuers and require 100% segregated reserves. In Jul 2026 the Authority set binding capital requirements for licence holders and proposed listing rules, and the Bank of Israel proposed easing Directive 411 so banks review crypto-linked payments by risk instead of blocking them. The digital shekel remains under study.

Legislation

• Draft Financial Services Supervision Law (Issuance of Stable Digital Currencies), 2026 (2026)
• Capital Market Authority Own-Funds Requirements for Virtual Currency Licence Holders (2026)
• Draft Capital Market Authority Circular on Listing Virtual Currencies (2026)
• Supervision of Financial Services (Regulated Financial Services) Law 5776-2016 (2016)
• AML Order on Crypto Transactions (Prevention of Money Laundering) (2021)
• Bank of Israel Directive 411 — Risk Management for Digital Assets (2022)
• ISA Amendment — Crypto Trading via TASE Members (2024)
• ISA Approval — Six Bitcoin Mutual Funds (2024)