Israeli Regulatory Authority Closes Unlicensed Crypto Exchange Bitin

The Israeli financial regulatory authority has ordered the immediate closure of cryptocurrency exchange Bitin, which has been operating without a license in the country. Additionally, the platform’s operator faces a financial sanction of about 1.7 million shekels (approximately US$460,000).

A Crypto Exchange by the “Bitcoin King of Israel”

The action against Bitin was initiated under an order from Amit Gal, the Commissioner of Capital Markets, Insurance, and Savings. Although the Bitin website remains active, Finance Magnates confirmed that crypto buying and selling services have ceased.

Bitin offered trading services for various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, USDT, and USDC. It claimed to provide customers with the “best rates in Israel” for these currencies. Curiously, the website’s footer indicates that “this site does not provide financial services” (translated from Hebrew).

In Israel, cryptocurrency exchanges are required to obtain a license from the Israeli Capital Market, Insurance, and Savings Authority (CMISA), which regulates cryptocurrency service providers under the Financial Services Supervision Law.

Rejection Is Not the End

The Israeli regulator rejected Bitin’s license application in 2022 due to the operator’s previous criminal investigations. Despite this, the operator continued offering buying and selling services for virtual currencies, violating local laws.

The exchange operator was arrested in February 2020 on suspicions of tax crimes and money laundering, along with three other participants. A year later, although cleared of money laundering charges, the operator, known as the “Bitcoin King of Israel,” was fined 15 million shekels for violating reporting requirements.

Earlier this year, the Israeli Securities Authority (ISA) issued a warning against a binary options trading platform, Pocket Option, targeting Israeli traders. The regulator prohibited the marketing and distribution of binary options in Israel in March 2016, due to rampant scams, later extending the ban to international marketing of binary options by Israelis in October 2017.