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Happiness: Supervision of virtual currency trading

The Constitution, Law and Justice Committee today approved the Anti-Money Laundering Order for Financial Service Providers, which brings under the anti-money laundering regime all currency service providers, including virtual currency service providers

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• Bitcoin

These are Levi-Weinrib

Tuesday, 02 February 2021, 14:59

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Is the celebration over?

(Photo: ShutterStock)

The Constitution, Law and Justice Committee today (Tuesday) approved the Anti-Money Laundering Order for Financial Service Providers, which brings under the anti-money laundering regime all currency service providers, including virtual currency service providers.

As reported in Globes, following the entry into force of the order all platforms that provide services in virtual assets - currency conversions, transfers between accounts in Israel and abroad and other operations - will have to perform a full identification procedure for each party for a virtual operation done in excess of NIS 5,000 (or $ 1,000) If the operation turns on a "red light" at the service provider, he will have to report it to the Anti-Money Laundering Authority, such as an operation of exceptional financial scope, financial transfers to enemy countries and more.

The regulation of the virtual currency trading area in the order is also expected to lead to the introduction of revenues from the network through virtual currencies into the regulated banking system, which has so far placed barriers for customers seeking to deposit amounts generated from virtual currency operations.

According to the head of the Anti-Money Laundering and Terrorist Financing Authority, Dr. Shlomit-Wegman, "The installation of the order constitutes a real line for the industry of financial service providers, fintech and the entire economy.

Order a balanced and good and will allow for Hfintk work in Israel and provide financial products competitive to Israel to meet international standards and reduce the risks of money laundering and terrorist financing in this activity, while increasing competition and creating a business environment safe for the entire economy. "

Prohibition on Money Laundering service providers financial asset that apply to all causes Providing services in financial assets, including the fintech industry, including services in virtual assets (crypto), international money transfers, currency conversions, asset

protection

, etc.

This is an area of ​​importance to the fintech industry and the public as it encourages competition with the banking sector and contributes significantly to the financial In that they also provide financial services to entities that do not have a bank account, this is always relevant to the general public and especially during the economic crisis around the corona. However, this is a sector recognized by the Israeli law enforcement agencies (NRA) as a high risk sector for crime, money laundering Capital and terrorist financing The order is intended to reduce these risks.

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The order will revolutionize and compete in the financial market

Advocate Ron Tzarfati, Bit2C's VP of Finance and Regulation, believes that "an anti-money laundering order for financial service providers (such as fintech and crypto companies) approved today in the Knesset is expected to cause a revolution and real competition in the Israeli financial market.

The order regulates all the necessary rules for the prevention and reduction of money laundering and terrorist financing risks, including the issue of identifying and verifying customers, conducting customer acquaintance procedures, monitoring transactions and conducting due diligence and forwarding reports to authorities.

According to a French lawyer, “the order creates dramatic and important recognition in the field of cryptocurrencies and regulates the regulatory rules that will allow the general public full access to digital currencies like Bitcoin, including investment, trading and day-to-day use options.

In fact, the state and authorities have expressed confidence in fintech companies that know how to manage risks themselves, similar to banks and credit card companies.

Now, the last and significant hurdle that has served as an excuse for some banks to sweepingly disqualify companies and the entire public using cryptocurrencies has been removed, as part of the inevitable evolution of the new digital economy.

The banks and the Bank of Israel are expected to express a firm and clear position that the banking system will also allow activity in digital currencies, as long as it is done through supervised and regulated entities. "

Bitcoin is moving into the mainstream

Manny Rosenfeld, chairman of the Israeli Bitcoin Association, adds that "the approval of the Constitution Committee for the Anti-Money Laundering Order is a very significant step for the Israeli bitcoin industry.

We expect that with the signing of the order we will finally be able to get rid of the unnecessary bank blockages that have been the lot of companies, investors and users of Bitcoin and other digital currencies in recent years.

This is the time for the various authorities to reach out to the bitcoin industry and help open the door to basic banking services that have been withheld from us for no injustice on our part so far.

Supervision does not scare us.

Bitcoin is moving to the mainstream, and that is where it should be, as one of the currencies leading the world economy. "

Adv

.

Inge Eisenberg, an expert in civil taxation and anti-money laundering from Eisenberg Shinar & Co., adds that" after more than two years Difficulties in managing their accounts and businesses within the banks, the good news came out today from the Constitution, Law and Justice Committee.

The approval of the order will lead to a situation where the banks can get used to the fact that they are supervised entities. "

She said," The situation after the approval is such that there are two alternatives in terms of the order: the first alternative can be declared immediately applicable, and the second alternative is "In the framework of the amended order, an attempt was made to clarify a number of aspects regarding digital means of identification, but this has some problems as there is still a discussion between several parties, including the police and the prosecutor's office. .

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