According to reports, Israel has issued new regulations related to the cryptocurrency industry to combat illegal activities such as money laundering and terrorist financing.

The Israeli government implemented new anti-money laundering (AML) regulations on Sunday, requiring local fintech companies and virtual currency service providers (VASP) to obtain operating licenses. Local news agency Globes Report.

According to reports, Israel’s Securities Authority, Capital Markets, Insurance and Savings Authority, the country’s independent financial regulator, is currently reviewing various VASPs that have applied for such licenses.

Shlomit Wagman, Director of Israel’s Money Laundering and Terrorist Financing Prohibition Authority, said that the new anti-money laundering rules will help the country curb the criminal use of digital assets, while also providing more support and legitimacy for the industry. The Jerusalem Post Report.

The official said: “The implementation of these regulations constitutes real progress for the Israeli economy, the financial technology industry and the improvement of financial competition.”

The Israeli government has been actively formulating regulations this year to combat illegal activities related to encryption. In July, the Israeli Ministry of Finance proposed a law Require residents to submit tax returns Purchase more than $61,000 in cryptocurrency.Earlier, it was reported that the Israeli Defense Minister Authorize security forces to confiscate encrypted accounts It is believed to be related to Hamas militants.

related: FATF’s guidelines for incorporating DeFi into encryption service providers

At the same time, the Bank of Israel has been experimenting with its own digital currency.As previously reported, the Bank of Israel Issuing central bank digital currency Pass the digital shekel pilot test as of June 2021.