Israeli Prime Minister Benjamin Netanyahu suggested using cryptocurrencies to evade potential banking sanctions, but the Bank of Israel rejected the idea and urged the government to preserve ties with key trading partners and avoid sanctions. Netanyahu later said he would take the central bank’s concerns into account.
Israeli crypto executives Tomer Sharoni and Ran Hammer warned that the remarks could bring extra scrutiny to Israeli crypto businesses. They said crypto could not support sanctions evasion across a national economy without leaving a visible trail, and that services handling transfers into and out of crypto are subject to anti-money-laundering rules. Sharoni called for a regulatory sandbox run by three Israeli authorities, clearer licensing rules aligned with EU standards, and better banking access for crypto firms.
