Cryptocurrency in Israel: regulation, bank access and taxes
In short. Crypto is legal in Israel and a gain meets the ordinary capital gains rate of 25%. The securities authority and the central bank share supervision, and the right of a crypto business to hold a bank account was settled in court rather than by statute. A bill to write digital assets into the income tax ordinance was still moving through the legislature in mid-2026.
- CAPITAL GAINS
- 25%for an individual
- HIGH-INCOME SURTAX
- 3%above the threshold
- MINING AND TRADING
- Up to 50%progressive scale as business income
- BANK ACCESS
- Court-backedbanks cannot refuse outright
- TAX LAW
- In draftthe rate sits in practice, not yet in statute
The banks lost in court
Israel's crypto rules came out of a court case. In 2015 Leumi, one of the largest banks, refused to let the broker Bits of Gold run crypto activity through its account. The district court sided with the bank in June 2017.
The Supreme Court did not. In a 2018 interim ruling it held that a bank may assess a transaction and manage its risk but may not refuse crypto business outright, noting that five years of exchange activity had produced no anti-money-laundering findings. That decision gave the industry its banking access, and it came from the bench, not from parliament.
Bits of Gold went on to become the first crypto firm licensed by the capital markets authority, and in March 2024 it launched a shekel-pegged stablecoin.
Who supervises
The securities authority and the central bank divide the ground between them. In August 2024 the securities authority opened a route for non-bank members of the Tel Aviv Stock Exchange to offer trading and custody inside a walled garden, starting with bitcoin and ether.
What you pay
An individual pays 25% on the gain. A high earner adds a 3% surtax above the threshold. Mining, and trading at a scale that reads as a business, meet the progressive scale instead, which reaches 50%.
The rate rests on how the tax authority applies existing law rather than on a provision written for crypto. A draft from the finance ministry and the tax authority would define digital assets in the income tax ordinance, fix the 25% in statute and tie the source of the gain to where the seller lived when buying. It had not passed by the middle of 2026.
Allowed
- Buy, hold and sell crypto
- Open and keep a bank account for crypto business, backed by the Supreme Court
- Trade and hold through licensed non-bank members of the Tel Aviv exchange
- Hold a shekel-pegged stablecoin issued by a licensed firm
Restricted
- A bank may still refuse a particular transaction after assessing it
- Business-scale trading leaves the 25% rate for the progressive scale up to 50%
- The 25% rests on practice, not statute: the bill has not passed
How the rules took shape
Leumi refuses to let the broker Bits of Gold run crypto activity through its account.
The district court sides with the bank.
The Supreme Court rules that a bank may manage risk but may not refuse crypto business outright.
Bits of Gold, by then licensed, launches a shekel-pegged stablecoin.
The securities authority lets non-bank members of the Tel Aviv exchange offer trading and custody.
A bill defining digital assets in the income tax ordinance is still before the legislature.
Common questions
Is crypto legal in Israel?
Yes. Owning, buying and selling are lawful, and the securities authority and the central bank supervise the market between them.
How much tax will I pay?
An individual pays 25% on the gain, plus a 3% surtax above the high-income threshold. Mining and business-scale trading go on the progressive scale, which reaches 50%.
Can a bank refuse my crypto business?
Not outright. The Supreme Court ruled in 2018 that a bank may assess a transaction and manage its risk, but a blanket refusal does not stand.
Is the 25% rate written in law?
Not yet. It comes from how the tax authority applies existing rules. A draft would put it in the income tax ordinance, and as of mid-2026 it had not passed.
Where can I trade?
Licensed non-bank members of the Tel Aviv Stock Exchange have offered trading and custody since August 2024, starting with bitcoin and ether.
Sources
Other countries
Updated 19.10.2026 · this is reference material, not investment or tax advice