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 (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 Crypto | No |
| Staking Tax | Taxable as ordinary income at marginal rates (up to 50%) |
| Airdrop Tax | Taxable 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.
| Required | Yes |
| Regulator | CMISA (primary for VASPs) / ISA (securities tokens) / BOI (stablecoins, payment systems) |
| Framework | Supervision of Financial Services (Regulated Financial Services) Law, 5776-2016; Securities Law, 5728-1968 |
| Ease | complex |
| 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.
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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