- Capital Market’s Authority has granted a license to Bit of Gold.
- Bit of Gold became Israel’s first crypto company to get licensed under the Capital Market’s Authority.
- The license would permit the company to store digital currencies securely and connect with banks.
Israel’s top cryptocurrency exchange, Bits of Gold, was granted a license from the Capital Market’s Authority, marking it the first crypto firm in the country to become licensed under the authority.
Bits of Gold shared a Facebook (NASDAQ:META) post conveying its ecstasy in becoming the country’s first licensed company under the Capital Market’s Authority.
As Bits of Gold has attained the authorization, it can store digital currencies securely in the “Bits of Gold Wallet”. Additionally, the company would get connected to the local banks and other financial institutions so that they could access the company’s digital assets.
Recently, Bits of Gold said that the company had been in regular efforts to make the world of digital currency more accessible to the Israeli public. The company added that the license was a part of this effort, allowing the public to access the crypto world “in a simple and secure manner”.
Previously, the Bank of Israel made regulations on cash payments, restricting “payments of large sums of money in cash and bank checks” to reduce crimes, money laundering, and tax non-compliance.
Tamar Bracha, the in-charge of executing law at the Tax Authority (ITA), recently reported that the goal of limiting cash “is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash”
Bits of Gold stated that the license and the regulations put forward by the bank would help resolve all the bank-related issues.
Tracing back, it could be understood that the institutional adoption of Israeli banks was very limited, so the authorities were very unfriendly to the crypto firms because of the Anti-Money Laundering (AML) issues. Back in 2017, the bank Leumi was legally permitted to refuse any business with Bits of Gold.
By 2019, the Supreme Court’s decision changed and declared that the bank could no longer block Bits of Gold. Furthermore, with the enforcement of new AML regulations, the country facilitated better cooperation between banks and crypto companies. Also, the need for the companies to get licensed was also considered.
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