The Israeli Capital Markets, Insurance, and Savings Authority (CMISA) has officially shut down the cryptocurrency exchange Bitin for operating without the required license, underscoring Israel’s strict regulatory stance on unlicensed crypto service providers.
According to Finance Magnates, Bitin was offering crypto trading services despite having its license application rejected in 2022. The CMISA has imposed a fine of approximately $460,000 on the exchange, and all trading services on the platform have now been suspended.
Operating Without a License
The decision to deny Bitin a license was rooted in the operator’s prior criminal conviction for tax-related offenses. Despite this, the exchange continued offering crypto trading services — a direct violation of Israel’s licensing requirements.
In a surprising twist, the Bitin website included a disclaimer in its footer claiming: “This site does not provide financial services.” However, the regulator determined that the platform’s activities clearly constituted unlicensed financial service provision under Israeli law.
Reinforcing Israel’s Regulatory Framework
The move highlights the Israeli government’s ongoing efforts to enforce compliance in the crypto sector. Since introducing anti-money laundering (AML) regulations in November 2021, the CMISA has established a framework for granting licenses to crypto firms that meet its regulatory standards.
In September 2022, Hybrid Bridge Holdings Ltd. became the first private firm to receive such a license, setting a precedent for lawful crypto operations in the country. The CMISA has remained active in policing the space, including investigating major exchanges like Binance for potential noncompliance in early 2023.
The shutdown of Bitin serves as a clear warning to crypto firms operating in Israel: comply with regulatory requirements or face legal consequences. As Israel continues to refine its digital asset framework, the emphasis remains firmly on consumer protection and financial integrity.
