An Israeli capital markets regulator, the Insurance and Savings Capital Market Authority, recently granted a “crypto financial services provider license” to Bits of Gold, the first such license for an active company in the country. Bits of Gold is now able to provide crypto custodian service and allow safe keeping of retail customers’ funds.
Amendment of Israeli Laws
In what has been described as a first in Israel, the country’s capital markets regulator, the Insurance and Savings Capital Market Authority (ISACA) recently granted Bits of Gold a “crypto financial services provider license.” This license enables the crypto exchange platform to “offer custodian services” as well as to allow “its retail customers to keep their funds safely and insured” via a wallet application that will be launched sometime in October.
A statement stated that Bits of Gold received its license after almost five years of waiting. A 2016 amendment to the law allowed the ISACA to issue operating licences to cryptocurrency entities.
Following the announcement, Bits of Gold’s chief executive officer (CEO), Youval Rouach stated:
Banks and other financial institutions can easily use our technology to access the crypto offerings for clients. Bits of Gold Connect is an exciting development we’ve been working on for 2 years. It allows financial institutions, banks, and fintech companies in Europe and Israel to link to our established infrastructures to offer diverse crypto solutions to their clients. To put it simply, it gives them a means to purchase, sell and hold cryptocurrency in an easy, secure and regulated manner.
Before being granted the ISACA-issued license, Bits of Gold held a “currency service provider” permit since 2013. However, in 2018 this permit was changed to a “business continuation” permit, which the crypto exchange platform held before being granted the latest license.
Meanwhile, in the statement, Bits of Gold claimed that with the ISACA-issued license and “the Bank of Israel recent orders” the crypto exchange platform will now be able to resolve banking problems that Israeli crypto holders have encountered for years.
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