Binance’s Sudden Stop in the Holy Land
In a recent twist of events, major cryptocurrency exchange Binance has decided to hit the brakes on its operations and marketing efforts directed towards Israeli customers. This change follows a request from Israel’s Capital Market, Insurance and Savings Authority, which has raised the regulatory flag on the exchange’s licensing status.
The Regulator’s Request
On Thursday, Israel-based news outlet Globes reported that the financial regulator has sought clarity from Binance regarding the specifics of the services it offers to Israeli clients and the licenses under which it operates. To their surprise, the regulator discovered that Binance had not submitted any application to secure permission to conduct business in Israel.
“Following the intervention of the capital market, Binance has at this stage stopped marketing to Israelis,” declared the Capital Markets Authority.
Payment Methods and Job Listings
If you were hoping to use the Israeli shekel to buy crypto on Binance, you might want to reconsider. The exchange’s website has quietly removed the shekel as a payment option, a feature that had its debut back in February 2020. But not all is silent; Binance still boasts seven job listings in Israel, showcasing they haven’t abandoned the region entirely. Perhaps they’re just on a break?
Binance and Regulatory Scrutiny
Changpeng Zhao, the man behind Binance, expressed a desire in July 2021 to collaborate with local regulators as the exchange expanded globally. However, the crypto giant continues to face waves of regulatory challenges, being under scrutiny from authorities in countries ranging from Italy and Malaysia to Thailand and Canada. It looks like Binance’s game plan for expansion might need a revamp.
Israel’s Crypto-Friendly Environment
Despite the regulatory hiccup, Israel has been relatively open to the adoption of digital assets, provided there’s a solid regulatory framework in place. With a population of about 9 million, the country’s enthusiasm for crypto is evident—President Isaac Herzog even received a non-fungible token symbolizing his oath of office back in July. In a bid to keep up with the digital times, Israel’s central bank has been deliberating the introduction of a digital shekel for nearly five years now.
Waiting for a Response
As of now, Cointelegraph has attempted to reach out to Binance for clarification but has yet to receive any word from the exchange. One can only wonder what the next chapter in this unfolding drama will bring.
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