- The Bank of Israel takes initiatives against illegal usage of crypto.
- Proper risk assessments to be conducted.
- Banks not to proceed transactions without proper license.
As the crypto dominance has taken over the world effectively, together with the dark world too. It’s highly evident that over the past few years the usage of crypto and Bitcoin (BTC) have increased dramatically. This includes all sorts of money laundering, terrorism financing, drug trades, weaponary trades and much more.
The true potential of the crypto and BTC being highly anonymous is the sole reason for such profuse usage of them for such illegal trades. In spite of all this, though half of the world is currently in the dilemma whether to legalize crypto or not, the other countries which have already legalized crypto and BTC are now being hello up with another major issue.
Those countries which have legalized crypto and BTC are now fighting effectively in terms to combat against the crypto usages against illegal trades, money launderings and terrorism financing. One such country to take up new initiatives against such issues is Israel.
Bank of Israel’s New Initiatives for Crypto
Accordingly, the Bank of Israel has officially announced new guidelines in order to prevent the illegal usage of crypto. This came out from the Bank of Israel on March 11, 2022. The new regulatory guidelines out out by the Bank of Israel focuses majorly on Anti-Money Laundering (AMT) and Combating Financing of Terrorism (CFT) through Banks which facilitate crypto to fiat transactions.
Thereby, the Bank of Israel now terms to build up a safe bridge between the Banks which facilitate crypto-fiat transactions and Virtual Currency Service Providers (VCSPs). Moreover, the Bank of Israel terms that this new act is highly necessary to control over the rapid rise in crypto users overall.
Besides, according to the regulatory guidelines, the Bank of Israel demonstrates to regulate all the illegal crypto transactions through two ways. One is to profusely investigate and track the sources of money used in buying the crypto. Second is to track down the way in which the crypto is being transacted and where to.
In addition, proper license and approvals papers from the supervisor of the Capital Market, Savings Authority and Insurance are necessary for all this.