Crypto regulation in Israel 2025: what every investor must know
The crypto market in Israel is going through a period of significant regulatory change. The Securities Authority, the Bank of Israel and the Tax Authority are forming around a clearer policy regarding digital assets.
Thank you for reading this post, don't forget to subscribe!Position of the Bank of Israel
The Bank of Israel examined whether to develop a digital shekel (CBDC). At the same time, the commercial banks in Israel still refuse a large part of transfers of crypto origin. In 2025, the policy is flexible – some banks have developed solutions to close gaps.
Crypto taxation
The IRS has determined that digital currencies are an “asset” for tax purposes. Capital gains from the sale of crypto are subject to capital gains tax (25% individual, 30% partnership). Every transaction must be reported, even exchange between currencies. Accurate record keeping is a must.
Israeli providers
Companies like Bits of Gold, Bit2C and CoinMama operate under supervision. In 2025, more companies applied for licensing as a “digital financial asset service provider” – an activity that requires KYC/AML information.
What is expected?
Israel is in the process of formulating specific legislation for digital assets. The European MiCA framework (which entered into force in 2024-2025) also affects Israel as a country integrating into the European market. Read about the spot ETF and its meaning.
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