Public Demand Drives Israel's Crypto Industry to Seek Major Regulatory Reforms

Public Demand Drives Israel's Crypto Industry to Seek Major Regulatory Reforms

KPMG forecasts that regulatory reforms in Israel's crypto sector could boost the economy by $38.36 billion and create 70,000 jobs by 2035, highlighting urgent reform needs.

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Last week, the Israeli Crypto Blockchain & Web 3.0 Companies Forum initiated a lobbying campaign aimed at driving regulatory changes that could potentially inject 120 billion shekels (approximately $38.36 billion) into the national economy by 2035. The campaign is expected to create around 70,000 new jobs.

During an event in Tel Aviv on February 3, Nir Hirshman-Rub, the Forum leader, emphasized public backing for easing restrictions on stablecoins and tokenization, alongside making tax compliance more manageable. He noted that over 25% of Israelis have engaged in cryptocurrency transactions in the past five years, with more than 20% currently holding digital assets, according to KPMG research.

A recent Chainalysis report highlights that Israel's crypto economy has experienced steady growth, with inflows reaching $713 billion last year, particularly following the October 2023 Hamas attacks. This growth is attributed to a robust retail market. Israeli firms like Fireblocks and Starkware are recognized leaders in the global digital asset sector, with over 160 companies attracting more than 5% of the $30 billion invested in the industry worldwide.

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