Cryptocurrency regulations are now a global political phenomenon. With countries like India, the United States of America, England, Russia tightening crypto regulations, the tide seems to be against digital currencies now. Joining the list of countries is Israel, which has now decided to tighten its grip on the autonomy of crypto and fintech firms.
Like many other governments and authorities, the government of Israel has also acted money laundering and financial crimes as its motive behind tightening regulations. Financial crimes involving cryptocurrencies have gone on for a long time now. It is not very surprising that governments are taking notice of it and trying to protect their citizens and national assets. It has also been the perfect shield to hide all the blatant anti-crypto policies and laws. With this move from the economic powerhouse of the Middle East, the global crypto scenario is set to change rapidly.
The new laws will make it mandatory for crypto firms to submit detailed reports of all transactions. Israel decided on this move since Israel has a long-standing conflict with the neighboring country of Palestine. The Israeli government believes that cryptocurrencies are one of the many means through which anti-Israel armed forces get funding. With tighter regulations, Israeli crypto exchanges will not be able to operate as freely as they were used. Submitting detailed reports will mean an additional loss of workforce for these firms, which can slow down their operations. On the other hand, it would also mean that government scrutiny will increase significantly and there might be a compromise of private information.