Tel Aviv, Nov 15 (IANS): Israel has imposed new rules on the transfer of digital currency in an effort to combat money laundering and terror financing, according to an official statement.

The new obligations are included in an ordinance imposed on service providers in financial assets, such as bonds, loans, stocks and bank deposits, reports Xinhua news agency.

The ordinance applies to providers such as credit, fintech and crypto companies that operate with virtual currencies.

It includes obligations to identify and verify customers, report their activity, control and monitor risks, and manage records.

It also imposes rules on electronic transfer of funds in Israel and abroad, and the transfer of financial assets in virtual currencies.

The new rules will as well allow the transfer of profits from cryptocurrency investments to Israeli banks if trading in these currencies is legal.

The ordinance will allow the use of virtual currencies more securely and will let the authorities distinguish between legitimate use and illegitimate purposes, such as money laundering or terror financing, the statement said.

The rules were jointly formulated by the IMPA and Israel's Capital Market Authority, Insurance and Savings.