Israel vs. Iran: Who’s Winning the Crypto Adoption War?

Amid escalating tensions, Israel and Iran are taking contrasting approaches to cryptocurrency adoption and regulation. While both nations have active crypto markets, their strategies differ significantly.

Israel’s Crypto Landscape

Regulated but cautious: Israel treats crypto as an asset (not currency) with a 25% capital gains tax.

Supports innovation but enforces strict anti-fraud and anti-money laundering rules.

CBDC in development: The "Digital Shekel" is underway but not yet launched.

2025 projections: $615.7M in crypto revenue with 3.65M users.

Iran’s Crypto Strategy

Strict government control: Banned crypto in 2018 before lifting restrictions.

Crackdowns in 2025: Shut down Tether-related payment channels and increased surveillance.

Taxation: Income tax on trading/mining profits and VAT on crypto purchases.

CBDC plans: "Crypto-rial" in development.

2025 projections: $1.5B in revenue with 6.73M users—higher than Israel.

Who’s Winning?

Iran leads in adoption (more users and revenue) but enforces heavy restrictions.

Israel leads in regulation and infrastructure, fostering innovation while maintaining oversight.

Bottom Line: Iran has more crypto activity, but Israel’s balanced approach may offer long-term stability. However, both lag behind global leaders like the U.S. and El Salvador.

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