Israel’s crypto industry is pushing back after Prime Minister Benjamin Netanyahu proposed using cryptocurrencies to bypass potential banking sanctions, a suggestion that was quickly opposed by the Bank of Israel. Industry figures said the remarks could create problems well beyond domestic politics. Tomer Sharoni, CEO of Addressable, and Ran Hammer, CEO of Orbs, warned that such messaging may trigger extra scrutiny from overseas exchanges and banks dealing with Israeli crypto businesses, while also hurting the reputation of the country’s Web3 sector.
Sharoni also laid out an alternative policy path. He said Israel should establish a regulatory sandbox jointly led by the central bank, the Israel Securities Authority, and the Capital Market Authority. He also called for a licensing regime for virtual asset service providers that aligns with the European Union’s Markets in Crypto-Assets regulation, or MiCA, as well as the Financial Action Task Force’s Travel Rule. In addition, he urged authorities to address access to banking services.
Israel’s crypto sector has pushed back after Prime Minister Benjamin Netanyahu proposed using cryptocurrencies to bypass potential banking sanctions, a move that was quickly opposed by the Bank of Israel.
Tomer Sharoni, chief executive of Addressable, and Ran Hammer, chief executive of Orbs, warned that this kind of rhetoric could lead overseas exchanges and banks to apply extra scrutiny to Israeli crypto businesses. They said it could also damage the reputation of the local Web3 ecosystem.
Industry calls for a regulatory framework instead
Sharoni said Israel should set up a regulatory sandbox led jointly by the central bank, the Israel Securities Authority, and the Capital Market Authority. He also called for a licensing regime for virtual asset service providers that complies with the European Union’s Markets in Crypto-Assets regulation, or MiCA, and the Financial Action Task Force’s Travel Rule.
He also urged action to resolve access to banking services.
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