Regulatory Crackdown: Israeli Financial Watchdog Shuts Down Unlicensed Crypto Exchange Bitin

The Israeli financial markets watchdog has taken action against the crypto exchange Bitin for providing crypto trading services without obtaining the required license, highlighting the country's stringent regulatory stance towards crypto companies.

The Israeli Capital Markets, Insurance, and Savings Authority (CMISA) has ordered the closure of Bitin for operating without the mandatory license, as initially reported by Finance Magnates. The exchange has been penalized with a fine of around $460,000, and all its crypto trading services have now been discontinued.

The operator of the exchange had previously been refused a license in 2022 due to a criminal record involving tax offenses. Despite this setback, it continued to provide crypto trading services. Ironically, the footer on the exchange's website states that "this site does not offer financial services."

The closure of Bitin and the imposition of a hefty fine of $460,000 emphasize Israel's commitment to ensuring that all crypto service providers adhere to the legal framework established by the CMISA.

After enforcing anti-money laundering regulations in November 2021, the CMISA started issuing licenses to crypto firms that met its criteria. In September 2022, Hybrid Bridge Holdings Ltd. became the first private company to secure such a license.

The CMISA has actively enforced these licensing requirements by taking action against unauthorized operations. Notably, the authority launched an investigation into Binance in February 2023 for allegedly restarting its operations in Israel without acquiring the necessary license.