Israel Modernizes Export Controls on Encryption Technologies

On January 2, 2026, Israel's Minister of Defense announced a significant overhaul of the country's export control framework for encryption technologies. This reform repeals the 1974 Encryption Order, a regulation that had become increasingly outdated due to technological advancements and international compliance practices. The repeal is set to take effect on March 21, 2026.

Alignment with International Standards

From the effective date, export controls on encryption technologies will be limited to items listed under the "Information Security" chapter of the Wassenaar Arrangement. This marks a substantial shift, bringing Israel's regulatory approach into closer alignment with international export control standards governing sensitive and dual-use technologies.

Implications for Exporters

Technologies previously covered by the 1974 order will not be entirely deregulated. Instead, they will fall under existing legal frameworks depending on their end use. Security- and defense-related applications will be subject to the Defense Export Control Law, while non-military applications will be governed by the civil import-export regime. This clearer separation aims to reduce regulatory ambiguity for exporters.

Industry Response

For companies developing or exporting encryption solutions, this reform necessitates a review of product classifications, updates to compliance procedures, and early preparation for the regulatory changes taking effect in 2026. More broadly, the reform reflects a global trend toward modernizing export control regimes by clearly distinguishing between civil and defense uses while maintaining strong oversight of sensitive technologies.