Crypto Exchange Bitin Ordered to Shut Down in Israel

The Israeli financial regulatory authority has mandated the immediate shutdown of cryptocurrency exchange Bitin due to its operation without a valid license in the country. In addition to the closure order, the platform's operator is facing a financial penalty of approximately 1.7 million shekels (around US$460,000).

The directive against Bitin was issued by Amit Gal, the Commissioner of Capital Markets, Insurance, and Savings. While the Bitin website remains accessible, it has been reported that the platform's cryptocurrency buying and selling services are no longer functional.

Bitin's website had advertised services for trading various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, and claimed to offer the "best rates in Israel." However, the website's footer contained a disclaimer stating that "this site does not provide financial services".

In Israel, cryptocurrency exchanges are required to obtain a license from the Israeli Capital Market, Insurance, and Savings Authority (CMISA). The regulator stated that Bitin's application for a license was rejected in 2022 because of a prior criminal investigation involving the operator. Despite this rejection, the platform allegedly continued to provide services, leading to the regulatory action.

The operator of Bitin, reportedly known as the "Bitcoin King of Israel," was previously arrested in February 2020 on suspicion of tax offenses and money laundering. While he was later cleared of the money laundering charges, he was required to pay 15 million shekels in fines for reporting violations. This action against Bitin follows a recent public warning issued by the Israeli Securities Authority (ISA) against a binary options trading platform, indicating an ongoing focus on regulating financial services within the country.