Israel

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.

Overview

StatusLegal
Risk Score65/100 (High Risk)
Regionmiddle east
CurrencyILS

Tax Information

Capital Gains (Personal)25% capital gains tax (30% for a 10%+ shareholder), plus 3% surtax and an additional 2% surtax on capital income above ILS 721,560 (2026); crypto is treated as an asset, not currency
Capital Gains (Corporate)23% corporate tax on crypto gains
VAT on CryptoNo
Staking TaxTaxable as ordinary income at marginal rates (up to 50%)
Airdrop TaxTaxable as income upon receipt at market value

The Israel Tax Authority treats crypto as an asset, so individuals' disposals are taxed as capital gains at 25%, plus surtaxes of up to 5% on high income; trading as a business is taxed as ordinary income at marginal rates up to 50%. Companies pay 23% corporate tax.

Licensing & Registration

RequiredYes
RegulatorCMISA (primary for VASPs) / ISA (securities tokens) / BOI (stablecoins, payment systems)
FrameworkSupervision of Financial Services (Regulated Financial Services) Law, 5776-2016; Securities Law, 5728-1968
Easecomplex
Cost (USD)$30,000 - $150,000

VASPs (virtual currency brokers and custodians) must hold a financial asset service provider licence from the Capital Market, Insurance and Savings Authority, which has issued custody and capital requirements for these licensees. The ISA determines whether tokens qualify as securities.

Enforcement Activity

Level: High

No detailed enforcement information available

CBDC

StatusResearch
Namee-shekel
Issuing AuthorityBank of Israel
Modelretail
TechnologyVMware (DLT)

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: unregulated

Stablecoins

Status: regulated

NFTs

Status: unregulated

Mining

LegalYes
Electricity Cost$0.122/kWh
Renewable Energy10%
Infrastructuregood

Mining is legal with moderate electricity costs and good infrastructure; renewable energy share is relatively low.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index60/100
Banking Accessopen
Sanctions Program ActiveYes

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.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Israel?

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.

What is the FATF status of Israel?

Israel is classified by FATF as: compliant.

Are VASPs licensed in Israel?

Yes, licensing is required for VASPs.

What is the AML/KYC regime in Israel?

KYC is mandatory for crypto businesses.

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Last reviewed: 2026-09-01 · Data source: Soken Crypto Legal Map

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