Israeli courts have ruled the Government can legally seize cryptocurrencies from over 150 digital wallets allegedly linked to terrorist funding sources.
Citing a blacklist of crypto wallets, the Jewish News Syndicate reported that the Tel Aviv Magistrate Court would allow the nation to seize an additional $33,500 in funding with alleged ties to Hamas.
Previous court rulings allowed the seizure of crypto assets over ties to militant groups, but blocked additional funds in digital wallets.
According to reports, Hamas rules Palestine’s Gaza Strip and is a designated terrorist organisation by the United States, European Union, the United Kingdom, and Israel. It allegedly used Bitcoin to circumvent global sanctions, blockades, and other restrictions.
This sparked an executive order in July last year, allowing authorities to seize cryptocurrency accounts allegedly tied to Hamas. Most involved Tether (USDT), Ether (ETH), Binance Coin (BNB), and others.
Regulators Crack Down on Crypto
The news comes after Shira Greenberg, Israel’s Ministry of Finance chief economist, outlined recommendations for an enhanced digital asset regulatory framework in early December.
Her report recommended restrictions on cryptocurrency trading platforms, crypto issuers, and safe management of digital assets, among others, in the 109-page report.
The official submitted the recommendations’ list amid sustained scepticism and low rates of adoption of cryptocurrencies across the Middle Eastern nation. To date, only 0.04 percent of the world’s total crypto transactions take place in Israel.
