Bitin shut down by Israeli regulator, hit with $460k fine

The Israeli financial markets regulator has shut down the crypto exchange Bitin for offering crypto trading services without the required license, reinforcing the country’s regulatory stance on crypto firms.

The Israeli Capital Markets, Insurance, and Savings Authority has shut down Bitin for operating without the necessary license, as originally reported by Finance Magnates. Bitin has also been fined approximately $460,000, and all crypto trading services on the platform have now been halted.

The exchange’s operator was previously denied a license in 2022 due to a criminal conviction related to tax offenses. Despite this, it proceeded to offer crypto trading services. Interestingly, the footer on the exchange’s website states that “this site does not provide financial services.”

The shutdown of Bitin and the imposition of a $460,000 fine underscore Israel’s commitment to ensuring that all crypto service providers operate within the legal framework established by the CMISA.

Following the implementation of anti-money laundering regulations on Nov. 2021, CMSA began issuing licenses to crypto firms that met its requirements. In September 2022, Hybrid Bridge Holdings Ltd. became the first private company to receive such a license.

The CMISA has actively enforced these licensing requirements by taking action against unlicensed operations. Notably, the authority investigated Binance in February 2023 for allegedly resuming operations in Israel without the necessary license.