the scene
Israel has a thriving. Getting yourself into the cryptocurrency world in israel isn't as simple as it is in the USA - you can't just enter Coinbase and purchase with a credit card. there are a few options like the CoinMama and BitsOfGold platforms but they take a high commission and recently - one of the major card companies in Israel, "Leumi Card", blocked access to the service claiming for Money laundering suspicions - the other card companies in Israel still allow buying at CoinMama but you still have to pay high fees.
Local exchanges
actually - there is only 1 online available exchange in Israel - the Bit2C platform that allow people to legally trade Bitcoin, Litecoin and bitcoin cash. the prices are higher than in international exchanges but it is the safest, legal way to get yourself into the cryptocoins scene. there is also a physical ATM machine in Tel Aviv - accepting ILS for bitcoin and powered by BitsOfGold service but again - they take their commission.
to conclude it - a service that will begin accepting ILS and take low commissions have a great potential to have success in Israel - as for now the options are limited and not backed by large players in the cryptocurrency exchanges market.