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 Score40/100 (Moderate Risk)
Regionmiddle east
CurrencyILS

Tax Information

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 CryptoNo
Staking TaxTaxable as ordinary income at marginal rates (up to 50%)
Airdrop TaxTaxable as income upon receipt at market value

No crypto-specific tax guidance available.

Licensing & Registration

RequiredYes
RegulatorISA / BOI
FrameworkSupervision on Financial Services Law + ISA Securities
Easecomplex
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.

Enforcement Activity

Level: High

No detailed enforcement information available

AML / KYC

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

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 limited renewable energy share. Infrastructure supports mining operations adequately.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index60/100
Banking Accessmoderate

Sources

Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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