Web3 Israel Newsletter #12

Dear Web3 Israel Newsletter subscribers,

In this edition, we bring you insights from Ron Hasgall and the crypto team at eToro. They have published eToro's "Ultimate Guide to Investing in Web3" a comprehensive roadmap for all aspiring Web3 investors. This guide not only illuminates the transformative power of Web3 across industries but also sheds light on the hidden treasures of investment opportunities - from cryptocurrencies and DeFi projects to NFTs. Moreover, they explore the crucial aspect of risk management, helping you navigate the choppy waters of regulatory uncertainties and market volatility. The guide gained a lot of traction and was recently also shared by the NFT thought leader Diego Borgo. Kudos!

But that's not all - We also have an exciting career opportunity for those passionate about securing the Web3 landscape. Check Point, the Israeli IT security giant, is on the lookout for a visionary leader to drive their Web3 security business unit. If you have a background in blockchain, product management, and cyber security, this could be your chance to shape the future of Web3 security, so don't forget to check out our job board below.

Enjoy,

Tomer Niv

Editor in Chief

News ??

• Bits of Gold is launching a custodian service for digital currencies, providing its customers with a secure storage solution. The custodianship will be carried out by BitGo, an American company, and the service has received approval from the Israeli Securities Authority. Previously, the high-level security offered by custodians was available only to institutions or large investors. With this new service, customers will be able to store their digital currencies with BitGo Trust, which operates under American regulations, while Bits of Gold will act as the service provider and manager.
• Former Celsius CEO, Alex Mashinsky , an Israeli citizen, was arrested on federal securities fraud charges, while the bankrupt crypto exchange agreed to a $4.7 billion settlement with the FTC. Both Celsius and Mashinsky, along with another Israeli citizen, Roni Cohen Pavon, were sued by the SEC and the Commodity Futures Trading Commission for allegedly scheming to defraud investors out of billions. Mashinsky, facing securities, commodities, and wire fraud charges, has pleaded not guilty, but if convicted, he and Roni could face lengthy prison sentences.
• A bill aiming to extend tax benefits to Israel's crypto sector has passed a preliminary reading in the Knesset. If enacted, the bill would exempt foreign residents from capital gains taxes on crypto sales and reduce tax rates for crypto options for employees from 50% to about 25%. This bill originated from the efforts of the Crypto Blockchain and Web3 Companies Forum, founded by Nir Hirschmann Rub and Shauli Rejwan ??? . The Forum highlighted the challenges faced by Israeli companies operating in the global market to Knesset Member Dan Iluz who took up the challenge and spearheaded the bill. This is all part of a broader initiative by the Forum to tackle banking and taxation issues, which currently hinder Israeli-global companies from functioning smoothly within Israel. The proposed legislation also has the support of Prime Minister Benjamin Netanyahu's coalition government, aligning with the country's economic policies to attract investors and companies to Israel.
• The Israeli government has established a special examination team to study the regulation of decentralized governance organizations, also known as DAOs. The team, led by officials from the Ministry of Finance and the Ministry of Justice, will explore the uses and activities of DAOs, including their decision-making processes. They will specifically focus on the use of native crypto tokens in blockchain-based DAOs and assess associated risks to provide regulatory clarity. The public has been invited to participate in consultations until September, and the feedback will contribute to formulating policy recommendations. Israel is taking steps to create a conducive regulatory environment for the crypto sector, aiming to support industry growth while ensuring safety and investor protection.
• A paper titled "Haze: A Compliant Privacy Mixer" has been published by Maya Dotan, PhD from Intuit Israel, Ayelet Lotem (Mizrahi) from Hebrew University of Jerusalem and Margarita Vald from Intuit Israel. The paper introduces Haze, a privacy mixer designed to ensure user privacy while adhering to regulations. Haze allows funds to be withdrawn only if they were deposited from a non-banned address, maintaining anonymity. The proof-of-concept system shows gas consumption comparable to Tornado Cash for compliant users, with an optional feature for non-compliant funds to be released to a predefined entity. The paper represents the first implementation of a blockchain-based smart contract to guarantee both compliance and privacy.

Community Spotlight ??

Major universities in Israel are taking the lead in fostering the next generation of Web3 pioneers:

Tel Aviv University - TAU Blockchain Community, spearheaded by our own Shahar Yahav , serves as a focal point for students eager to explore the limitless possibilities of blockchain in the Tel Aviv region. Recently, they held several guest speakers for the students and a bar outing with the team.

Reichman University (formerly known as IDC Herzliya) - the IDCrypto & Blockchain Club, founded by Tom Rafaely ??? ????? and Roee Ben shoshan , provides a dynamic setting for students to delve into the intricacies of blockchain and cryptocurrencies just north of Tel Aviv.

Ben Gurion University - Often, we don’t hear of blockchain startups that are developing in places outside of Israel’s traditional economic hub, Tel Aviv. Yet, B7 group from Beer Sheba, led by Amit Shilo and Omri Mandelbaum boasts an impressive track record of hosting captivating blockchain hackathons, events, and partnerships with several major companies around the Israeli blockchain ecosystem. B7 is completely changing the scope of what is happening in the Southern district of Israel while further fueling the passion and expertise of their members in creating a blockchain hub in Beer Sheba. B7 is making the Negev bloom!?

Each of these three unique clubs showcase significant developments across the blockchain ecosystem in Israel, creating a nurturing environment that encourages collaboration, education, and experimentation. As the future leaders of blockchain in Israel, these students are poised to revolutionize industries, redefine financial systems, and shape the landscape of Web3 applications. What better place to start nurturing our future blockchain leaders than in the schools that they are representing. Through their pioneering efforts and relentless pursuit of innovation, the students at these clubs are paving the way for a new era of blockchain innovation in Israel.

Job Board ??

Below you can find the on-going list of hot open positions in Israeli web3 well-funded startups. Feel free to contact me if your Israeli startup wants to post an open position.

• Check Point (CHKP), a publicly-traded IT security company, is looking for a Head of Blockchain & Web3 Security Business Unit Leader.
• eToro, a social trading company, is looking for a Crypto and Payments Product Manager.
• Playtika, a gaming company, is looking for a?VP Blockchain Technologies.
• Fireblocks, a web3 platform, is looking for a Director of Product for its?Financial Products?and its?Wallet Solutions.
• Hexagate, smart contract cybersecurity startup, is looking for a Head of Growth and a Senior Product Manager.
• FRNZX, a web3 RegTech startup, is looking for a DevOps Engineer.
• Lava Network, a decentralised RPC startup, is looking for a?Head of Product.
• Chaos Labs, a DeFi risk management startup, is looking for a?Data Science Team Lead.
• Braavos, a StarkNet-based non-custodial wallet, is looking for a?Senior Blockchain Contract Engineer.
• GK8, a Crypto Custody startup which was recently acquired by Galaxy, is looking for a Director of Sales APAC and a Product Manager.
• Ingonyama, a ZKP semiconductor startup, is looking for talents, are you up for the?challenge?

Have a suggestion or feedback? Talk to us!

Web3 Israel Newsletter Team (alphabetical order):?Arthur Shkolnik,?Benny Attar,?Rea Gavriel Klayman,?Roee Hamuy,?Ruben Adhoute,?Shahar Yahav,?Tom Elia,?Tomer Niv,?Yoav Tietz