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nid 93569
Jun 30, 2026
rghosh@vixio.com
Israel
Ministry of Finance - News
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2136 charsIsrael's Ministry of Finance and Capital Markets Authority Publish Stablecoin Regulation Bill for Public Comment
On June 29, 2026, Israel's Ministry of Finance and Capital Markets, Insurance and Savings Authority (CMISA) released a bill memorandum for public consultation establishing a regulatory framework for stablecoin issuance in Israel. The memorandum was developed over approximately one year through a comprehensive professional process led by CMISA with support from the Chief Economist's Office at the Ministry of Finance.
The bill represents the first dedicated licensing and supervisory framework for stablecoin issuers in Israel, implementing Government Decision 204 on advancing digital asset regulation. The framework incorporates international standards from the U.S. Genius Act and the European Union's Markets in Crypto-Assets Regulation (MICA), adapted to Israel's regulatory environment. Stablecoins are digital assets whose value is pegged to an underlying asset such as the shekel or dollar. Globally, over 200 stablecoins operate with an estimated value exceeding $300 billion, supporting monthly transaction volumes of approximately $2 trillion and annual growth rates exceeding 40 percent.
The development process included extensive consultation with relevant stakeholders, including the Bank of Israel and financial sector professionals. Finance Minister Bezalel Smotrich said the bill demonstrates Israel's commitment to fostering a modern regulatory environment enabling innovation and growth while maintaining financial stability and consumer protection. CMISA Supervisor Amit Gal noted that stablecoins represent a significant growth driver in digital finance and the framework will create regulatory certainty supporting market development in Israel.
Beyond the public comment period, CMISA will conduct roundtable discussions and professional forums with financial institutions, technology companies, fintech entities, academics, and government bodies to thoroughly examine the bill's provisions and ensure the final regulation is professional, balanced, and aligned with technological and business developments.
REFERENCES:
Ministry of Finance – News: https://www.gov.il/he/departments/news/stablecoin_bill_2026
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2506 charsIsrael's Ministry of Finance and Capital Markets Authority Publish Draft Stablecoin Regulation Bill
On June 29, 2026, Israel's Ministry of Finance and Capital Markets, Insurance and Savings Authority (CMISA) released a bill memorandum for public consultation establishing a regulatory framework for stablecoin issuance in Israel.
The bill represents the first dedicated licensing and supervisory framework for stablecoin issuers in Israel. The framework incorporates international standards from the U.S. Genius Act and the European Union's Markets in Crypto-Assets Regulation (MICA) , adapted to Israel's regulatory environment.
The bill is built around four core principles:
Licensing obligation and comprehensive supervision. Issuance of stable digital currencies is prohibited without a designated licence. Licensing, supervision, and regulatory authority is assigned to the Commissioner of the Capital Market, Insurance and Savings, acting as Supervisor of Currency Issuance. Applicants must meet honesty and integrity standards, demonstrate financial stability, and maintain appropriate technological and cyber infrastructure. Foreign issuers operating outside Israel may also be licensed, provided they are supervised in their country of origin and that jurisdiction's law provides adequate customer protection.
Reserve backing and asset segregation. Issuers must maintain full and constant backing of issued coins by reserve assets at a ratio of no less than 100%. Reserve assets must be invested in low-risk, highly liquid instruments such as cash or short-term government bonds to enable rapid redemption during periods of stress. Reserve assets must be held in a legal structure fully segregated from the issuer's own assets, so that in the event of insolvency they are reserved exclusively for currency holders and protected from claims by other creditors.
Redemption rights, transparency, and disclosure. Currency holders have a fundamental right to redeem their holdings at the value of the reference asset, promptly and on fixed terms, with no redemption fee permitted. Issuers must publish a disclosure document in Hebrew at least 30 days before issuance, setting out the currency's characteristics, its linkage and redemption mechanism, and associated technological, operational, and legal risks.
Corporate governance. Issuers must maintain a board of directors of at least three members, a general manager, an auditor, and an independent compliance officer responsible for oversight of currency issuance activity.
Comments on the proposed bill should be submitted by July 20, 2026.