Bitin Shut Down by Israeli Regulator and Fined $460K

The Israeli financial regulator, the Capital Markets, Insurance, and Savings Authority (CMISA), has shut down the crypto exchange Bitin for operating without the required license, highlighting Israel’s strong regulatory stance on cryptocurrency services. The closure of the platform was accompanied by a fine of approximately $460,000, emphasizing the country’s commitment to enforcing compliance with its financial regulations.

Bitin, which had been offering crypto trading services without a license, had previously been denied a license in 2022 due to the operator’s criminal conviction related to tax offenses. Despite the denial, the exchange continued to provide crypto trading services. Interestingly, the exchange’s website footer contains a disclaimer stating, “this site does not provide financial services,” a statement that now appears ironic in light of the closure and the fine.

The shutdown of Bitin serves as a clear signal from the CMISA that unlicensed operations will not be tolerated. The imposition of the fine further underlines Israel’s dedication to ensuring that all crypto service providers comply with legal requirements.

Israel’s regulatory framework for crypto companies has evolved since the implementation of anti-money laundering regulations in November 2021, which required firms to obtain licenses in order to legally operate in the country. In 2022, Hybrid Bridge Holdings Ltd. became the first private company to receive such a license.

The CMISA has been proactive in investigating and taking action against unlicensed crypto operations. In February 2023, the regulator conducted an investigation into Binance for allegedly resuming operations in Israel without the necessary license, further reinforcing its stringent stance on ensuring that cryptocurrency platforms adhere to legal standards.

With this enforcement action against Bitin, Israel continues to assert its position as a country that prioritizes regulatory compliance and financial integrity in the crypto industry.