Israel battles suspicious cryptocurrency activity

Financial institutions will be required to report suspicious transfers to online gambling sites.

Israel.- A new legislation draft will force financial institutions from Israel to report any suspicious cryptocurrency activity by their clients. While the bill proposed by Israel Money Laundering and Terror Financing Prohibition Authority is open to the public until June 13th, it will come into force by the beginning of the month.

The case specifies 37 money laundering alerts, which include cryptocurrency transfers to online gambling sites. The bill establishes that service providers have to keep full documentation of cryptocurrency activity for a period of no less than five years.

While local banks have questioned large deposits of cryptocurrency-earnings due to money laundering ties, this is the first time the government has actually set clear guidelines. Meni Rosenfeld, chairman of the Israeli Bitcoin Association, said: “The bill will give regulatory assurance and define what is allowed and what is prohibited, allowing banks and financial institutions to know who is compliant with the rules, and whose money they can accept.”