Israel imposes restrictions on cash payments to encourage digital payments

According to the statement of the Israel Tax Authority, the measure is needed to combat criminal organizations that use cash more often

01.08.2022 - 12:05

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What’s new? On August 1, a law went into effect in Israel that prohibits payments of large sums in cash and bank checks. Transactions exceeding 6000 Israeli shekels (~$1790) must be paid by digital transfer or debit card. According to the Israel Tax Authority (ITA), this is needed to combat illegal activity and encourage digital payments. ITA spokeswoman Tamar Bracha explained that the limitation on cash transactions is intended “to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash.”

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In March, Israel’s second-largest bank, Bank Leumi, announced plans to provide customers with the option to trade and store BTC and ETH cryptocurrencies. The financial institution partnered with the Paxos blockchain platform. The initiative has not yet received regulatory approval.

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