The Authority for Combating Terror Financing and Money Laundering on Sunday announced that new regulations now apply to cryptocurrency, Bitcoin, Fintech and a range of other digital financial products which have been less regulated until now.
Authority director Shlomit Wegman said that the new rules were both an opportunity to start cracking down more systematically on criminal abuses of these new financial products as well as giving them greater support and predictability for legal uses.
In recent years, there have been a wide number of scandals and mega frauds perpetrated in the cryptocurrency realm where money could be moved around much faster than with traditional banks, but there was also little oversight.
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According to Wegman, the new regulations are designed to step into that space to establish order and clear standards.
If the authority had to previously invest serious resources to uncover fraud in an area where there was no official reporting, now all of the new financial product companies will need to make reports just like banks.
Bitcoin, the world’s most famous cryptocurrency (credit: BENOIT TESSIER /REUTERS)
For example, certain transactions over NIS 50,000 will always require a series of reports, and in countries considered high risk for terror financing, even transactions over NIS 5,000 will require them.
If one of the benefits of new financial products like Fintech has been that clients do not need to physically meet with the financial institution that is providing a …….
Source: https://www.jpost.com/israel-news/anti-terror-banking-rules-now-apply-to-cryptocurrency-684971