Israel Overhauls Its Export Control Framework for Encryption Technologies

On November 20, 2025, Israel’s Minister of Defense announced a major 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 This reform repeals the 1974 Encryption Order, a regulation that had become increasingly outdated in light of technological innovation and international compliance practices. The repeal will officially take effect on March 21, 2026.

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

Technologies previously covered by the 1974 order will not be deregulated entirely. 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.

For companies developing or exporting encryption solutions, this reform requires 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.