---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "middle_east", "fatf", "legal"]
aliases: ["IL", "ISR", "ישראל"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--israel]]"]
sources:
  - name: "https://www.isa.gov.il"
    url: "https://www.isa.gov.il"
    type: "official"
  - name: "https://www.boi.org.il"
    url: "https://www.boi.org.il"
    type: "official"
---

#  Israel (IL) — Crypto Regulation

> 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

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 40/100 (Moderate Risk) |
| Enforcement Level | High |
| Region | [[domain--middle-east|middle east]] |
| Currency | [[entity--ils|ILS]] |

## Tax

| Type | Rate |
|------|------|
| 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 |
| Mining Tax | No specific guidance |
| 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.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--isa|ISA]] / BOI |
| Framework | Supervision on Financial Services Law + ISA Securities |
| Ease | complex |
| Cost | $30,000 - $150,000 |
| Timeline | 6-12 months |

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.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | Yes |
| FATF Status | compliant |

## DeFi

**Status:** unregulated

## Stablecoins

**Status:** regulated

## NFTs

**Status:** unregulated

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.122/kWh |
| Renewable Energy | 10% |
| Climate | temperate |
| Infrastructure | good |

Mining is legal with moderate electricity costs and limited renewable energy share. Infrastructure supports mining operations adequately.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | unstable |
| Sanctions | No |
| Corruption Index | 60/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | moderate |

## Enforcement

No detailed enforcement information available

## CBDC Status: pilot

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [https://www.isa.gov.il](https://www.isa.gov.il)
- [https://www.boi.org.il](https://www.boi.org.il)