In a recent report, the authorities of the Ministry of Finance of Israel announced a draft of the Money Laundering Prohibition Order applied to merchants that trade with cryptocurrencies, as well as other regulations that concern merchants with customers and service providers with digital currencies. .
This new draft aims to face the current market, in order to reduce incidents of criminal acts associated with money laundering. In this regard, the executives commented:
The definition of a financial asset service that replaces and expands the term money services includes all activities and services through a business that does not involve the granting of credit. The intention is to allow the supervision of financial services, which are not tangible assets or standard financial means, in an area that has been developing in recent years.
For its part, Yishai Trif, the CEO of the cryptocurrency service provider 'Moneynetint', added that:
To complete the legal framework for activities with virtual currencies, clear instructions on the prevention of money laundering and terrorist financing are required. The declaration that the area is not regulated is repeated as part of the banks' automatic refusal to provide services for those who trade with cryptocurrencies. Because of this, the steps given are important and necessary. They provide regulatory certainty to banks and financial institutions and define clear rules about what is allowed and what is not.
The new legislation will be enforced as of June 1 and each service provider with cryptocurrencies or banks or exchanges will be obliged to supervise and report any suspicious or illegitimate activity by clients. In the same way, a record of the commercial activities carried out must be kept; In addition, said report must contain the complete data of the transactions, including IP addresses, of digital portfolios and the type of cryptocurrency transacted since the last five years.
This movement will define the standards and rules that must be fulfilled in relation to banking entities in association with digital currencies; as well as it will open the terrain of safer negotiations and in accordance with the law.