Israel takes a pragmatic, agency-distributed approach. No unified crypto law, but VASPs must register with CMISA. ISA approved amendment (Aug 2024) allowing non-bank TASE members to offer crypto trading/custody. ISA pushing for legislative amendments to define "digital assets" more broadly.
| Status | Legal |
| Risk Score | 65/100 (High Risk) |
| Region | middle east |
| Currency | ILS |
| Capital Gains (Personal) | 25% capital gains tax on crypto profits (treated as property/asset) |
| Capital Gains (Corporate) | 23% corporate tax on crypto gains |
| VAT on Crypto | No |
| Staking Tax | Taxable as ordinary income at marginal rates (up to 50%) |
| Airdrop Tax | Taxable as income upon receipt at market value |
No crypto-specific tax guidance available.
| Required | Yes |
| Regulator | CMISA (primary for VASPs) / ISA (securities tokens) / BOI (stablecoins, payment systems) |
| Framework | Supervision on Financial Services Law + ISA Securities |
| Ease | complex |
| Cost (USD) | $30,000 - $150,000 |
VASPs must register under Financial Services Control Law with CMISA. ISA determines if tokens qualify as securities. Jan 2026: ISA proposed amendments aligning licensee provisions with digital age.
No detailed enforcement information available
| Status | Research |
| Name | e-shekel |
| Issuing Authority | Bank of Israel |
| Model | retail |
| Technology | VMware (DLT) |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: unregulated
Status: regulated
Status: unregulated
| Legal | Yes |
| Electricity Cost | $0.122/kWh |
| Renewable Energy | 10% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and good infrastructure; renewable energy share is relatively low.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 60/100 |
| Banking Access | open |
| Sanctions Program Active | Yes |
Risk Factors
Israel has stable political environment with no international sanctions against it. It maintains active sanctions programs. Corruption index moderate, ease of doing business and internet freedom are good. Banking access for crypto companies is generally open.
Israel takes a pragmatic, agency-distributed approach. No unified crypto law, but VASPs must register with CMISA. ISA approved amendment (Aug 2024) allowing non-bank TASE members to offer crypto trading/custody. ISA pushing for legislative amendments to define "digital assets" more broadly.
Israel is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-01 · Data source: Soken Crypto Legal Map
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