Cryptocurrency Laws in Israel: Complete 2026 Guide
✅ Legal & RegulatedIs Cryptocurrency Legal in Israel?
Israel has a well-developed crypto regulatory framework and one of the world's strongest crypto-startup ecosystems. Israeli residents may legally buy, hold, trade, and use cryptocurrency. The Israel Securities Authority (ISA) regulates securities-token activity. The Capital Markets, Insurance and Savings Authority (CMISA) supervises crypto custody and certain investment activity. The Bank of Israel handles monetary policy and the Digital Shekel CBDC research.
Israel's tax authority (Israel Tax Authority — Reshut HaMisim) treats cryptocurrency as a financial asset subject to capital gains tax. Israeli tax positions on crypto have been developed through circulars (notably 5/2018) and tax rulings. The country is home to many crypto-native firms (StarkWare, Fireblocks, Wirex) and has been a major centre of crypto research.
Regulatory Framework
ISA regulates securities tokens under the Securities Law. The CMISA registers Financial Services Providers including those handling crypto. AML compliance is jointly supervised. From 2024 the Bank of Israel has been advancing Digital Shekel research with a public consultation phase ongoing.
Crypto Exchanges in Israel
Bits of Gold is the leading domestic crypto broker. eToro (Israeli-founded) offers crypto trading globally including to Israeli users. Binance, Coinbase, Kraken, and other global platforms are accessible to Israeli residents. Banking integration with Bank Leumi, Bank Hapoalim, and others is generally permissive for licensed brokers.
Israel Crypto Regulatory Timeline
ISA issues first guidance on token classification.
Tax Authority Circular 5/2018 — crypto subject to capital gains tax.
CMISA framework for FSPs including crypto becomes operational.
Bank of Israel advances Digital Shekel research.
CARF preparation begins; continued framework refinement.
Crypto Taxes in Israel — Summary
Israeli crypto gains are taxed as capital gains at 25% for most individuals. High-earners (above the surtax threshold ~ILS 698,280 in 2024) face an additional 3% surtax. Mining and certain commercial activity may be classified as ordinary income at progressive rates up to 50%. Israeli residents are taxed on worldwide income including all crypto activity.
Frequently Asked Questions
Is crypto legal in Israel?
Yes — fully legal. Crypto trading and use are permitted; service providers operate under ISA and CMISA frameworks depending on activity.
What's the crypto tax rate in Israel?
25% capital gains for individual investors, plus 3% surtax for high earners. Commercial-scale activity (frequent trading, mining at scale) may be ordinary income at progressive rates up to 50%.
What is Bits of Gold?
An Israeli crypto broker — the country's longest-running. Israeli users frequently use Bits of Gold for fiat on/off ramping due to strong banking integration.