Polymarket is accessible in Israel — the platform does not geoblock Israeli IP addresses. Israel is a global fintech hub with an active, legally-recognized crypto ecosystem, a strong startup culture, and local exchanges that make it straightforward to move from Israeli New Shekels (ILS) to USDC. Here’s what Israeli users need to know about using Polymarket.
Current Status: Accessible
Israel is not on Polymarket’s geoblocked countries list. The platform is fully accessible from Israeli IP addresses, and Israeli users can sign up, deposit, and trade on all available markets.
Israel has one of the world’s most developed fintech and tech sectors despite a relatively small population, and cryptocurrency adoption is well established. The country is home to local exchanges that have operated for over a decade and a securities regulator that has been actively shaping a digital-asset framework rather than outright prohibition.
The legal landscape for prediction markets in Israel sits in a grey area. Israel’s gambling laws are restrictive, and crypto-assets are regulated on a case-by-case basis under securities law. Decentralized, crypto-based platforms like Polymarket are not explicitly addressed, and there is no record of enforcement against Israeli Polymarket users.
The Legal Landscape
Crypto-Assets and the Israel Securities Authority (ISA)
Crypto-assets are legal in Israel. The Israel Securities Authority (ISA) is the primary securities regulator and determines on a case-by-case basis whether a specific digital token qualifies as a security under the Israeli Securities Law. When it does, offerings may be subject to securities regulation; assets that don’t qualify as securities fall outside the ISA’s securities framework.
The ISA has been progressively developing a tailored digital-asset regime. As of 2026 it is working to establish a dedicated regulatory framework that distinguishes between established digital assets and other tokens, and it has signaled openness to a structured “rulebook” for crypto rather than blanket prohibition. This means the regulatory picture is evolving, but crypto trading by individuals is neither banned nor criminalized.
Financial Services and VASP Supervision
Virtual Asset Service Providers (VASPs) operating in Israel are subject to registration and anti-money laundering (AML) obligations under the financial services supervision framework, overseen by the Capital Markets, Insurance and Savings Authority (CMISA) alongside the ISA and the Bank of Israel. Israel has also been advancing dedicated licensing for stablecoin issuance, reflecting an active, maturing regulatory approach.
Gambling Laws
Israel’s approach to gambling is conservative. The primary legislation, the Penal Law, prohibits most forms of gambling apart from narrow state-regulated exceptions. Online gambling generally operates in a restricted or unregulated space rather than through a licensed legal framework.
Prediction markets specifically are not explicitly addressed in either the securities framework or the gambling law. Decentralized, crypto-based platforms like Polymarket fall into an unregulated gap. There is no evidence of Israeli authorities taking action against ordinary users who trade on such platforms, but the absence of a clear carve-out means the legal status is best described as an unresolved grey area.
How to Deposit from Israel
Israel has a well-developed crypto on-ramp ecosystem thanks to local exchanges that support ILS bank transfers.
Step 1: Buy USDC on a Local Exchange
| Exchange | ILS Bank Transfer | Card | Notes |
|---|---|---|---|
| Bit2C | Yes | Yes | Long-running Israeli exchange; strong ILS support |
| Bits of Gold | Yes | Yes | Established Israeli exchange; bank transfer available |
| Binance | Yes (P2P) | Yes | Global leader; P2P ILS trading available |
| OKX | Yes (P2P) | Yes | Low fees; broad ILS on-ramp options |
Deposit Methods Explained
ILS Bank Transfer (Recommended): The most direct way for Israeli users to fund a local exchange is a standard bank transfer in Israeli New Shekels. Exchanges like Bit2C and Bits of Gold accept ILS deposits from Israeli bank accounts, and you can then convert to USDC. Transfers typically clear within a business day.
Card Payments: Many exchanges accept credit or debit card purchases of crypto, which are fast but usually carry higher fees than bank transfers.
P2P (Peer-to-Peer): Global exchanges like Binance and OKX offer P2P markets where you can buy USDC directly from other users using ILS payment methods, often including local bank transfers.
Step 2: Transfer USDC to Polymarket
- Go to Deposit on Polymarket
- Select Use Crypto and copy your deposit address
- Send USDC from your exchange to the Polymarket address
- Choose Polygon for the lowest fees ($3 minimum, arrives in seconds)
For the full walkthrough, see our How to Deposit on Polymarket guide.
Tax Implications
Israel does not have a dedicated crypto tax code. Instead, the Israel Tax Authority (ITA) treats cryptocurrency as a tradeable asset — a position it has held since 2018 and which Israeli courts have affirmed — rather than as a currency.
Capital Gains Tax
Profits from selling, trading, or otherwise disposing of crypto are generally treated as capital gains. For individuals, the standard capital gains tax rate is a flat 25%. This rate is well established for typical crypto investment activity.
Business Income
Where crypto trading is frequent, large-scale, or structured as a business, the Israel Tax Authority may instead characterize the activity as business income, which is taxed at Israel’s progressive personal income tax rates (up to roughly 50% at the top bracket). Casual investors holding and selling crypto are typically taxed at the 25% capital gains rate.
Reporting Requirements
- You are responsible for self-reporting crypto gains in your annual tax filings to the Israel Tax Authority
- There is generally no withholding tax on trades executed on overseas platforms — reporting is up to you
- Keep detailed records of deposits, trades, withdrawals, and conversion rates
What You Don’t Pay
- No VAT on crypto-to-crypto transactions for private investors in most cases (VAT generally applies to businesses, not individual holders)
- No dedicated crypto surcharge — standard capital gains or income rates apply
Because crypto tax treatment in Israel still has grey areas — especially around DeFi activity and stablecoin conversions — it’s advisable to consult a tax professional familiar with Israeli crypto taxation if your activity is substantial.
Getting Started
If you’re in Israel and want to start trading on Polymarket:
- Sign up for Polymarket — under 2 minutes, no KYC required
- Buy USDC on Bit2C or Bits of Gold via ILS bank transfer
- Deposit on Polymarket — transfer USDC via Polygon
- Place your first trade — start with a small amount
- Use limit orders to avoid taker fees — only taker orders pay fees on Polymarket
Related Guides
- How to Sign Up for Polymarket — Create your account
- How to Deposit on Polymarket — Full deposit guide
- How to Trade on Polymarket — Market orders, limit orders, and tips
- Polymarket Fees Explained — Fee breakdown by category