Is Bitcoin Legal in Israel?
Yes. Bitcoin is legal in Israel, crypto service providers need a licence from the Capital Market Authority, and gains are taxed as capital gains.
Legal and regulated · facts checked November 2026 · some details from secondary sources · bitcoin is $77,637 today
| Status | Legal and regulated |
|---|---|
| Regulator | Capital Market, Insurance and Savings Authority (licensing of crypto service providers); Israel Securities Authority (funds, securities); Bank of Israel (banks) |
| Main law | Supervision of Financial Services (Regulated Financial Services) Law, 2016 (amended for 'financial asset' services, licensing since 2021) |
| Exchanges | Yes. Crypto service providers need a financial-asset service provider licence; 2026 rules set capital of NIS 2-2.5 million and require customer assets to be held separately. |
| Paying with bitcoin | Not legal tender (the shekel is). Merchants may accept crypto voluntarily. |
| Banks | Yes. Bank of Israel guidance lets banks handle funds from licensed crypto providers, and in mid-2026 banks were told to stop blanket refusals and deposit delays. Bank Leumi plans crypto trading from early 2027, subject to approval. |
| Tax | The Israel Tax Authority treats crypto as an asset: individuals pay 25% capital gains tax (30% for substantial holders), plus surtax on high incomes. |
| Mining | Allowed |
| Recent change | Aug 2026: Bank Leumi and Galaxy announced bitcoin, ether and solana trading for retail customers (launch expected early 2027); 1 Aug 2026 circular let licensed firms offer the top-50 coins. |
Bitcoin in Israel: FAQ
Is bitcoin legal in Israel?
Yes: bitcoin is legal in Israel, crypto service providers need a licence from the Capital Market Authority, and gains are taxed as capital gains.
Is bitcoin legal tender in Israel?
Not legal tender (the shekel is). Merchants may accept crypto voluntarily.
How is bitcoin taxed in Israel?
The Israel Tax Authority treats crypto as an asset: individuals pay 25% capital gains tax (30% for substantial holders), plus surtax on high incomes.
Who regulates crypto in Israel?
Capital Market, Insurance and Savings Authority (licensing of crypto service providers); Israel Securities Authority (funds, securities); Bank of Israel (banks). Yes. Crypto service providers need a financial-asset service provider licence; 2026 rules set capital of NIS 2-2.5 million and require customer assets to be held separately.
Is bitcoin mining legal in Israel?
Allowed.
Other Countries Where Bitcoin Is Legal And Regulated
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