Israel has reportedly enacted new regulations related to the cryptocurrency industry in order to combat illegal activities such a money laundering and terrorism financing.

The regime of State of israel enforced new Anti-Coin Laundering (AML) regulations on Dominicus, requiring local fintech companies and virtual currency service providers (VASP) to obtain an operating license, local news bureau Globes reported.

The Israel Securities Authority, the Capital Markets, Insurance and Savings Dominance, the country's contained financial regulator, is now reportedly in the process of reviewing various VASPs that have applied for such a license.

Shlomit Wagman, director of the Israel Money Laundering and Terror Financing Prohibition Authority, said that the new AML rules would help the country curb criminal usage of digital assets while also providing the manufacture with more than back up and legitimacy, The Jerusalem Mail reported.

"The application of the regulations constitutes real progress for the Israeli economy, the fintech industry and for improving financial competition," the official said.

The Israeli government has been actively working on regulations to combat illicit activities related to crypto this year. In July, Israel'due south Ministry building of Finance proposed a law requiring residents to file taxation declarations for crypto purchases above $61,000. Previously, the Israeli defence minister reportedly authorized security forces to seize crypto accounts believed to be tied to the militant fly of Hamas.

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In the meantime, State of israel's central banking company has been experimenting with its own digital currency. As previously reported, the Banking concern of Israel issued a central banking company digital currency through a pilot exam of a digital shekel as of June 2022.