Crypto Industry Launches Major Campaign Ahead of Israeli Elections

As Israel's 26th Knesset elections approach, the cryptocurrency, blockchain, and Web3 industry has launched a significant public campaign called "Israel Chooses Crypto." This initiative aims to pressure politicians across the political spectrum to commit to comprehensive reforms in the digital currency market.

The campaign features a digital platform that tracks the stances of 156 candidates from 13 parties on cryptocurrency issues. It allows citizens to easily find their preferred candidate, check their position, and send them a pre-written message on the social media platform X. The core demands include integrating crypto reforms into coalition agreements, enabling banks to handle digital assets, and establishing fair taxation policies.

The industry's push is inspired by the "Stand With Crypto" movement, which exerted similar pressure during elections in the United States. Proponents argue that regulating the market could inject approximately 120 billion shekels into the Israeli economy by 2035 and create around 70,000 new jobs, according to KPMG research. Conversely, regulatory delays are causing significant harm, with a survey indicating that one-third of local crypto startups are considering or have already decided to relocate their operations abroad.

Nir Hirschman, CEO of the Crypto Forum, highlighted the current situation's absurdity, stating, "One and a half million Israelis hold digital currencies. While the country is looking for revenue sources to cover the deficit, 120 billion shekels are lying on the floor, and no one is bending down to pick them up."

Despite general frustration with regulators, the industry recently saw a small positive development. In April, the Israel Securities Authority granted a permanent license for financial asset services to the crypto investment house "Proxibit," part of the Proxima Group. This marks the first such license issued in over two years and one of the few ever granted in Israel, fueling the industry's demand for broader, systematic reforms.