Israeli regulators investigating Binance again after ordering it to shut unlicensed local activity last year
Israeli regulators investigating Binance again after ordering it to shut unlicensed local activity last year
The Capital Market Authority is checking information according to which the Binance crypto exchange has returned to operating in Israel through a local website, even though it did not receive a license to do so
Israel's Capital Market Authority has increased its activity against unlicensed crypto providers in the country, including the world's largest exchange Binance.
About a year ago, the Authority notified the exchange headed by Changpeng Zhao, better known as CZ, that it's marketing activity to Israeli customers requires a license in Israel.
The supervisor at the time, Moshe Bareket, contacted the Binance representative office in Israel and offered it to apply for a license, but Binance did not submit an official request.
Following the request by the Authority, the marketing of these services to Israeli customers was stopped. However, it seems that recently Binance is once again increasing its activity in Israel through an Israeli website that links to the company's main website. This activity is now being investigated by the Authority, currently headed by Amit Gal, to assess whether it is being carried out in violation of the law.
Entities operating in Israel providing services of buying, selling, converting and maintaining cryptographic assets require a license from the Capital Market Authority. The promotion of licensing and the protection of investors in the sector was recently highlighted in a report published by a committee looking into the regulation of the crypto market headed by the Chief Economist at the Treasury, Shira Greenberg.
In recent months, the Capital Market Authority has granted licenses to provide crypto services to three Israeli entities: Altshuler Shaham Horizon; Hybrid Bridge Holdings controlled by Giyora Ran, Moshe Teumin and Gitam advertising company; and Bits of Gold, controlled by Yuval Rouach.
The Authority rejected the license application of crypto entrepreneur Bar Mittelman, who was convicted at the end of 2021 of tax evasion as part of a plea agreement. Mittalman tried to get back into the crypto field and appealed against the Authority's decision, but the court rejected his request.
