Crypto Regulation in Israel

Legal

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 Crypto
No
Staking Tax
Taxable as ordinary income at marginal rates (up to 50%)
Airdrop Tax
Taxable as income upon receipt at market value
Mining Tax
--

Licensing & Registration

License Required
Yes
Regulator
ISA / BOI (Israel Securities Authority / Bank of Israel)
Framework
Financial Services Regulation Law (crypto provisions 2024); AML/CFT Supervision of Financial Service Providers
License Types
--
Estimated Cost (USD)
$30,000 - $150,000
Timeline
6-12 months
Ease of Licensing
Complex

AML / KYC

KYC Required
Yes
Travel Rule
Yes
FATF Member
--
FATF Status
--
Suspicious Activity Reporting
--

Mining

Mining Legal
Yes
Status
Legal
Electricity Cost ($/kWh)
$0.15
Renewable Energy
20%
Climate
Hot
Infrastructure
Excellent
Tax on Mining Income
23% corporate tax on crypto gains
Notes
Hot climate increases cooling costs for mining operations.

DeFi, Stablecoins & NFTs

DeFi: unregulatedStablecoins: regulatedNFTs: unregulatedCBDC: pilot - Digital Shekel project (Project Shaked) in advanced testing phase

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Limited Liability Company
Licensing Support
Available | $25,000 - $100,000

Sources

Israel Securities Authority Bank of Israel
verified

Frequently Asked Questions

Is crypto legal in Israel?
Cryptocurrency is currently classified as "Legal" in Israel.
What is the crypto tax rate in Israel?
In Israel, the personal capital gains tax on crypto is 25% capital gains tax on crypto profits (treated as property/asset), and the corporate tax rate is 23% corporate tax on crypto gains.
Do I need a crypto license in Israel?
Yes, a crypto license is required in Israel. The regulator is Israel Securities Authority / Bank of Israel under Financial Services Regulation Law (crypto provisions 2024); AML/CFT Supervision of Financial Service Providers. Estimated licensing cost: $30,000 - $150,000.
Is crypto mining legal in Israel?
Yes, crypto mining is legal in Israel. Electricity costs approximately $0.15/kWh. Mining income is taxed at: 23% corporate tax on crypto gains. Hot climate increases cooling costs for mining operations.
What are the AML/KYC requirements for crypto in Israel?
Yes, crypto businesses in Israel must comply with KYC (Know Your Customer) requirements. The FATF Travel Rule is implemented.