The Central Bank of Israel has prepared a draft directive for cryptocurrencies.
Israel’s Central Bank has released new draft regulations that open the country’s financial system to crypto companies by requiring banks to review companies one by one rather than applying general refusals.
In the draft published on the bank’s official website, it was stated that banking companies should conduct risk assessments and set policies and procedures for transfers from or into virtual currencies.
The draft states that for licensed crypto firms or financial asset service providers, banks will be required to review each case on their own and will not be allowed to issue a comprehensive disclaimer to the service provider.
Banks will also be required to clarify the source of the money used to purchase cryptocurrencies and monitor movements from the moment the virtual currency is purchased to the moment the virtual currency is converted to fiat currency and deposited into an account with the banking company.
The draft was developed in line with the anti-money laundering (AML) rules enacted in the country.
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