Israel Financial Regulator Speeds Up Licensing FinTech Firms Amidst Bank Lockout For Crypto Deposits
The cryptocurrency industry in Israel is both hot and cold as the regulation sector experiences massive growth and the cryptocurrency traders are frustrated by the banking system. In a report released on August 19, the financial authorities in Israel are looking to accelerate their issuance of licenses to fintech companies including blockchain and cryptocurrency companies. This comes in light of recent refusal by banks in the country to accept cryptocurrency investors’ deposits to their accounts.
Acceleration In Fintech Licensing
The Israeli financial authority, Capital Market, Insurance and Saving Authority – established under the ministry of finance – announced its plans to hasten the licensing of fintech companies. According to a local Israel publication, the authority is looking to accelerate the applications of over 2000 blockchain based companies seeking approval to do business in the country.
While the overall stance on cryptocurrencies has been negative in the country, the blockchain industry is flourishing and the authority has played a huge role in the growth. Business and technological innovation are the key goals that drive the commission as narrated by the head of Authority, Dr. Moshe Barkat.
Barkat further said,
“The Authority is engaged in the licensing and regulation of fintech companies on a regular basis, including digital insurance companies, P2P platforms and credit providers, digital wallets, Blockchain-based fintech ventures and other payment services providers.”
Cryptocurrency Investors Suffer From Banks
Through August, BEG has reported continued feuds between the banks and cryptocurrency investors in Israel. Banks in the country are not accepting cryptocurrency deposits which leaves cryptocurrency investors with a hard time to pay their taxes or receive profits in shekels. These investors are taking legal action against the banks as we reported earlier in the month.
On Aug 10, an investor filed a lawsuit against Israeli bank Hapoalim demanding $23 million USD in compensation. While the full details were not discussed, the investor’s lawyer claims the bank refused to deposit his BTC profits to his account.
On Monday, BEG reported the increasing number of lawsuits against Israeli banks who are very likely to cut you off from their system if you deal in cryptocurrencies. The investors are fighting the bank lockouts with freedom to information petitions to explain why they can’t make deposits.