Israel has changed its regulations and will now accommodate fintech services regulated in the UK, the US, and the EU. This means Payset, among others, can now operate in Israel.
Foreign-Regulated Companies Can Now Operate In Israel
Fintech services based in three major global regions can now operate in Israel thanks to new financial regulations, according to a release by Herzog, a Tel Aviv-based law firm.
The Knesset Finance Committee—part of Israel’s legislature—has approved a temporary order allowing foreign financial firms to provide certain services in Israel.
According to the Tel Aviv-based law firm Goldfarb Seligman, the new temporary order will add an exemption for payment services, allowing companies in the U.S., U.K., and European Union to provide those services in Israel.
Eligible companies in those regions no longer need to obtain a Financial Asset Services license in Israel to operate in the country. Rather, those companies only need to follow the regulations of their home country—particularly anti-money laundering (AML) regulations.
The temporary order allows foreign regulated companies to provide various payment services (including the provision of credit) allowing customers to send money to Israel. However, it does not allow payment services involving virtual currencies (i.e., cryptocurrencies).
Payset, for instance, which is based in the UK, will now be able to offer its חשבונות מרובי מטבעות ו הֲמָרַת מַטבֵּעַ services to Israeli clients.
The temporary order will be valid until Jan. 1, 2024.
Customers Will Get More Choices
These changes to the law will give Israeli citizens a much wider choice of financial services. Foreign-regulated companies, meanwhile, will be able to seek out a wider client base.
In Payset’s case, we will now be able to offer our חשבונות מרובי מטבעות, הֲמָרַת מַטבֵּעַ, and other payment services to clients in Israel, and Israelis will now be able to send money to Israel and take advantage of new promotions in the future.
Payset offers support for up to 38 מטבעות, including the Israeli shekel, the euro, the US dollar, and the UK pound sterling.
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