The financial markets regulatory body in Israel has shut down the cryptocurrency exchange Bitin for providing trading services without the appropriate license, further solidifying the country’s regulatory position on digital asset companies.
The Capital Markets, Insurance, and Savings Authority (CMISA) took action against Bitin for operating without the required authorization, as initially reported by various outlets. The exchange has also been fined roughly $460,000, and all cryptocurrency trading activities on the platform have been suspended.
The operator of the exchange had previously been denied a license in 2022 due to a prior criminal conviction for tax offenses. In spite of this, they continued to offer crypto trading services. Interestingly, a message at the bottom of the exchange’s website claims that “this site does not provide financial services.”
The closure of Bitin and the associated fine of $460,000 highlight Israel’s dedication to ensuring that cryptocurrency service providers adhere to the legal framework laid out by the CMISA.
Since the introduction of anti-money laundering regulations in November 2021, the CMISA has begun issuing licenses to cryptocurrency firms that meet its established criteria. In September 2022, Hybrid Bridge Holdings Ltd. became the first private entity to be granted such a license.
The CMISA has been vigilant in enforcing these licensing mandates by taking measures against unauthorized operations. Notably, the authority investigated Binance in February 2023 for allegedly resuming its activities in Israel without the necessary license.