Israeli Crypto Exchange Obtains CMA License by CoinEdition

© Reuters. Israeli Crypto Exchange Obtains a License from the Capital Market Authority
  • The CMA has granted a license to Bit of Gold.
  • Bit of Gold became the first crypto company in Israel to obtain a license under the Capital Market Authority.
  • The license will allow the company to securely store digital currencies and communicate with banks.

Bits of Gold, the largest cryptocurrency exchange in Israel, has been granted a license by the Capital Market Authority, making it the first crypto company in the country to obtain a license under this authority.

Bits of Gold shared a post on Facebook (NASDAQ:) conveying its joy of becoming the first company licensed in the country under the supervision of the Capital Market Authority.

Since Bits of Gold has obtained the authorization, it can store cryptocurrencies securely in the Bits of Gold Wallet. In addition, the company will connect with local banks and other financial institutions so that they can access the company’s digital assets.

Recently, Bits of Gold said that the company has been making regular efforts to make the world of digital currency more accessible to the Israeli public. The company added that the licensing was part of that effort, as it gave the public access to the crypto world in a “simple and secure way.”

Previously, the Bank of Israel established regulations on cash payments, restricting “payments of large sums in cash and bank checks” to curb crime, money laundering, and non-compliance with taxes.

Tamar Bracha, who is responsible for law enforcement at the ITA, recently reported that the goal of limiting cash “is to reduce cash in the market, mainly because criminal organizations tend to rely on cash.”

Bits of Gold stated that the licensing and regulations put in place by the bank would help in resolving all issues related to the bank.

Looking back, it can be understood that the institutional adoption of Israeli banks has been very limited, so the authorities have been very unfriendly to crypto companies due to anti-money laundering (AML) issues. Back in 2017, Bank Leumi was legally allowed to refuse any business with “nuggets of gold”.

By 2019, the Supreme Court’s decision changed and announced that the bank could no longer ban gold cutting. Moreover, with the enforcement of new anti-money laundering regulations, the country has facilitated better cooperation between banks and crypto firms. The need for companies to obtain a license was also considered.

The Israeli cryptocurrency exchange appeared after obtaining a license from the Capital Market Authority for the first time to issue coins.

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