Capital market: Bits of Gold receives its license. The Israeli stock exchange, Bits of Gold, has just received a license from the Financial Markets Authority. Note that this award is a first in the country. It thus allows the exchange to operate on the capital market.
The stock exchange can now operate legally.
Bits of Gold, the Israeli crypto exchange, received its license earlier this week. It thus enables it to operate legally on the capital markets. It thus becomes the first cryptocurrency company in the country to receive this license, which, it should be remembered, is granted by the Autorité des marchés financiers. The exchange will thus be able to work with local banks and above all, store digital currencies in the famous Bits of Gold wallet.
Announced for some time as an ultra-secure wallet, it would store a variety of digital assets. By having the license, the cryptocurrency exchange will also be able to provide a service that would allow financial institutions as well as banks to connect to digital currencies.
Simplified access to cryptos for Israelis.
In a statement, the cryptocurrency exchange stressed that it aims to make the world of cryptocurrencies more accessible to the Israeli public. Obtaining the license is therefore the first step to getting there. Indeed, by simplifying access to cryptocurrencies and securing exchanges, the public will be better able to engage in this type of transaction.
It should be recalled that the Israeli authorities have imposed restrictions on cash payments in the territory. This is in order to put an end to illegal transactions and thus promote the transition to the use of cryptocurrencies. Admittedly, there is still a long way to go, but with this good news, we can only remain optimistic.
Blockages at certain levels.
The adoption of cryptocurrencies in Israel has indeed been fraught with pitfalls. This is somewhat reminiscent of the situation in Iran. Already, Israeli banks had been very hostile to digital currencies and asset storage systems. Then there were the issues regarding anti-money laundering (AML).
In 2017, the Israeli Supreme Court ruled that Leumi, a local bank, could legally refuse service to Bits of Gold. At the time, the bank claimed that the nature of Bitcoin did not make it eligible for GAP requirements. However, the Supreme Court changed tack in 2019.
It ruled that Leumi could not block Bits of Gold's account due to regulatory concerns. By doing so, she set a precedent for other cryptocurrency companies.
Changes noted in recent years.
In recent years, new anti-money laundering regulations have been enforced by the government in Israel. This has helped pave the way for collaborations between cryptocurrency industry players and banks.
The evolution was slow to take place but allowed cryptocurrency companies to prevail. They obviously need to obtain a license in order to continue their activities. For Bits of Gold, it's already a done step. There remain to be reviewed questions regarding the tax legislation in order to ensure the institutional adoption of cryptocurrencies in Israel.
According to Coincub, the country has notably been ranked as the third country in the world to offer high taxation on cryptocurrency gains. These taxes can indeed go up to 33% in Israel. If the investment activity is otherwise considered to be business-related, income tax up to 50% will have to be reckoned with.
Recall that earlier this month, the Capital Markets, Insurance, and Savings Authority had already granted the first Israeli crypto license. This is to the infrastructure company Hybrid Bridge Holdings. The one that Bits of Gold received represents, in turn, a first of its kind for a local active broker.
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