Find the best cryptocurrency exchanges available to Israeli traders in 2026, with ILS support, competitive fees, and compliance with local regulations.
Israel has a growing and increasingly sophisticated crypto ecosystem, with over 200,000 active traders. The Israel Securities Authority (ISA) and Bank of Israel share regulatory oversight. The country's strong tech sector has produced several notable crypto companies and blockchain startups. Israeli banks have become significantly more crypto-friendly in recent years, especially after a 2023 Bank of Israel directive.
**How Fees Compare**
Local options tend to be expensive. Bits of Gold, Israel's largest local exchange, charges 3-5% for simple buy and sell orders. CoinMama, which was founded in Israel, charges 3.9-5.9% when using a credit card. For lower fees, most Israeli traders turn to global exchanges: Binance (0.1%), Kraken (0.16-0.26%), and eToro (1% crypto fee plus spread). ILS deposits via bank transfer are available on Bits of Gold and eToro. Credit card purchases are widely accepted but come with an extra 2-4% in fees.
**Staying Safe as a Trader in Israel**
- Israeli banks (Leumi, Hapoalim, Discount) are now required to process crypto-related transfers following the 2023 Bank of Israel directive
- The ISA regulates crypto marketing and advertising, which gives consumers some built-in protections
- Be careful using Israeli credit cards for crypto purchases. Visa and Mastercard may classify these as cash advances with extra fees
- Keep detailed records for Mas Hachnasa (the Israel Tax Authority)
- Watch out for Israeli binary options and forex scam operations that have pivoted into the crypto space
**What Sets These Exchanges Apart**
eToro, which was founded in Tel Aviv, offers social and copy trading features with a Hebrew-language interface tailored for Israeli users. Bits of Gold provides OTC services for large trades denominated in Israeli shekels. For institutional access, Israeli fintech company Fireblocks provides custody infrastructure used by major global exchanges. Many Israeli traders are also involved in building crypto projects and launching tokens, thanks to the country's vibrant startup ecosystem.
**What You Need to Know About Taxes**
Israel taxes crypto gains as capital assets at 25% for individuals, which is lower than the standard 30% rate applied to securities. If your trading activity qualifies as business income, the full marginal rate applies, going up to 50%. The Israel Tax Authority has been increasing its focus on crypto and now requires exchanges to share customer data. Any crypto received as salary is taxed as employment income.
Crypto Regulations in Israel
Israel regulates crypto under the Capital Markets Authority (ISA). Exchanges must register as financial service providers. Crypto gains are taxed as capital gains at 25%. The Anti-Money Laundering Authority oversees KYC/AML compliance. As of 2026, Israel is progressing toward comprehensive crypto legislation aligned with international standards.
Frequently Asked Questions
Is crypto legal in Israel?
Yes. Crypto is legal in Israel. The ISA and Bank of Israel oversee regulation. Banks are now required to accept crypto-related transfers.
How is crypto taxed in Israel?
Capital gains tax of 25% for individuals. Business income rates up to 50% for professional traders. All transactions must be reported to the Israel Tax Authority.
What is the best crypto exchange in Israel?
eToro offers the best Hebrew-language experience with social trading. Bits of Gold is the leading local ILS exchange. Binance and Kraken offer the lowest fees.
Do Israeli banks accept crypto transfers?
Yes. Following a 2023 Bank of Israel directive, banks must accept crypto-related transfers. Leumi, Hapoalim, and Discount Bank all process these transactions.
Can I use my Israeli credit card to buy crypto?
Yes, but Visa/Mastercard may apply cash advance fees on crypto purchases. Bank transfer or direct ILS deposit is cheaper.