Bitcoins PTP anonymous digital currency raises Israelis eyebrows

Monday 24 February 2014 13:00 CET | News

Israeli authorities have announced the citizens that the use of Bitcoin’s digital currency may pose threats and that regulations are under proposal for implementation in the local market.

Israels central bank governor, Karnit Flug, has held a meeting with regulators of the capital and insurance markets, Tax Authority, and the Israel Money Laundering and Terror Financing Prohibition Authority. Analyses are performed for the issuing of solutions related to the use of, and trade in, virtual currencies. Analysis is focused on unpredicted macro effects, their legal standing, their regulation, money laundering and terror financing risks, taxation, and consumer protection.

Bitcoin, a decentralised open source electronic money network, uses cryptography to secure transactions by means of peer-to- peer (PTP) networks and the use of anonymous transfers and does not require centralized financial institutions. In 2013, Bitcoin`s exchange rates jumped by 700% in the first quarter, reaching over USD 1,200 by the end of the year.

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Keywords: Bitcoin, Israeli authorities, central bank, digital currency, macro effects, money laundering
Categories: Payments & Commerce
Countries: World
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