Bank of Israel Eases Crypto Deposit Rules for Banks
Translated & summarized from Ice by baba
The Bank of Israel is revising regulations for cryptocurrency deposits in banks, with new rules taking effect on May 1, 2027. The automatic 100,000 shekel threshold for mandatory source verification of crypto funds will be removed, replaced by risk-based assessments. Industry leaders believe this change will significantly boost Israel's crypto sector, potentially creating 70,000 jobs and adding 120 billion shekels to the GDP.
The story in 5 lines · by baba
- Bank of Israel directive Nevat 411 eases crypto deposit rules for banks, effective May 1, 2027.
- The 100,000 shekel annual threshold for mandatory crypto fund source verification is eliminated.
- Banks will now assess crypto transactions based on individual risk levels, not a fixed monetary cap.
- The change aims to support legitimate crypto activities and prevent blanket restrictions due to money laundering concerns.
- Industry figures project the new rules could create 70,000 jobs and add 120 billion shekels to Israel's GDP.
The Bank of Israel's Supervision of Banks division is significantly altering regulations concerning the deposit of cryptocurrency funds within the traditional banking system. New directives, known as directive Nevat 411, will take effect on May 1, 2027, aiming to streamline processes and facilitate legitimate crypto-related activities.
A key change removes the automatic requirement for banks to investigate the source and flow of digital currency funds when annual transfers from crypto service providers to a client's account exceed 100,000 shekels. Instead, banks will assess transactions based on their individual risk levels, rather than a fixed monetary threshold.
Bank of Israel officials stated that this move is intended to refine banking requirements for fund reception, support the expansion of payment services, and signal to banks that concerns about money laundering should not be a blanket justification for hindering legitimate operations.
Yuval Roash, CEO of Bits of Gold, commented that the amendment, finalized after a year of public consultation, will recognize licensed service providers as risk-reducing entities and establish rules for receiving funds from coin issuances. He anticipates this change will open doors for the crypto industry, potentially adding 70,000 jobs and 120 billion shekels to Israel's GDP.
Nir Hirschman, CEO of the Crypto Companies Forum, echoed these sentiments, calling Nevat 411 one of the most crucial changes for crypto and Bitcoin in Israel. He believes it will enable secure and swift crypto fund deposits while adhering to anti-money laundering and counter-terrorist financing standards, a goal the forum has pursued for four years.
