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

Stabilityunstable
SanctionsNo
Corruption Index60/100
Banking Accessmoderate

Risk Factors

Israel maintains stable political conditions with no major sanctions. Moderate corruption and good ease of doing business support crypto activities, though regional tensions pose risks.

Sources

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

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