The Times of Israel posted a blogpost today in which contributor Frank Coutinho discussed the current stance and possible future of cryptocurrency in Israel.
In the post, Coutinho points out that Israel has been colder towards crypto than many governments. It is not banned, and for many years Israel took a hands off approach to regulation. However, with the massive price run up of last year and subsequent drop, the Tel Aviv Stock Exchange decided enough was enough and announced that any bitcoin related companies would be removed.
The problem wasn’t really the price of Bitcoin so much as the hype around it. Companies have famously added “blockchain” to their name just to see their stock price rise. TASE saw this as unethical and risky to the market.
As for the Israeli government itself, it allows Bitcoin as a taxable asset and is currently seeking “friendly” regulation towards ICO’s.
Israel is an important player in the financial world, so this should apply to crypto as well. It will be interesting to see what place it takes in the future as the market expands.