The central Bank of Israel has told local banks that they cannot refuse to accept deposits from bitcoin and cryptocurrency.
Israel’s central bank has urged local banks to accept digital asset venture deposits if the funds are not linked to criminal proceedings. The method complements the anti-money laundering legislation that applies to cryptocurrency firms.
Local banks have reportedly received an outline of an announcement from Israel’s central bank. Money laundering and other financial crimes are the primary emphases of the report.
According to the order, bitcoin market firms must comply with new regulations, which will help banks better manage risk when receiving and transferring digital assets.
For digital asset transactions, the circular provides information on what banks should bear in mind while doing so. These include the kind of money, their size and their risk categorization.
Israeli cryptocurrency exchange Bit2C’s vice president of finance and regulatory, Ron Tzafrati, said:
On the one hand, Bank of Israel ultimately recognizes the obligation of banks to carry out risk assessment and management and not to resolutely deny the transfer of funds by the Bank’s clients in connection with digital currency activities. On the other hand, in many cases, the bank leaves banks a lot of leeway to continue refusing, which in reality does not pose a real risk of money laundering.
Israeli officials declared less than a month ago that they will impose new laws on the cryptocurrency business, aimed at reducing the use of bitcoin and altcoins for unlawful activity. According to the idea, all organizations involved in cryptocurrency would be required to submit regular reports to authorities.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.