Israel is considered as an advanced country in terms of economy, with a healthy growing ecosystem with countries all around the world. And successful banking with a lot of influence globally and involvement in the stocks exchange; also, in fact, the most companies in Nasdaq 100 after USA and Canada, against all the huge countries such a small country with many technology companies very valuable and progressing. So as it’s known, they also care about the regulation regarding the cryptocurrencies; the biggest threat to the ecosystem nowadays and the most trending thing around the world with millions of people involved and huge influence around the world, billions of dollars are invested and put into this new young industry that just came from nowhere and became a huge impact in the economy.
For the last few months, actions started to be taken by the Internal Revenue Service regarding cryptocurrencies. How Bitcoin will be taken in the country, whether as a currency or as a digital asset. Nowadays there’s no one true statement yet and a lot of discussions are going on towards a brighter future. According to the recent actions, it seems like Israel is going towards the right direction for Bitcoin and other cryptocurrencies which considered as coins. Tokens were decided to be considered as digital assets according to this paper by the IRS. Compared to the Bitcoin which has a more positive approach by the government, recently the court imposed an order against the banks so they can’t prevent from customers to purchase Bitcoin and other cryptocurrencies.
According to the latest paper that was published by the IRS, decentralized cryptocurrencies that were used for personal investment will not necessarily need to pay taxes except for the profit, unless you used those cryptocurrencies for business purposes or for mining, therefore, you will need to pay taxes and treat it like a digital asset.
The IRS of Israel is clearly taking the whole crypto topic very serious and bringing a lot of discussions and statements to the table. Actions towards ICOs were taken and mostly about taxes regarding conversions between currencies and issue. They truly understand the difference between tokens and coins and show different approaches to each one of those technologies, whether positive or negative regulations; eventually there are some regulations which show pure intentions to bring the crypto into the cryptosystem as a healthy part of the country’s ecosystem.
Israel doesn’t show any intent to make crypto free taxes like some specific countries in the rest of the world. But definitely a lot of hard work, effort and will to bring all the regulation that is needed for a maximum understanding of the crypto in the economy in this country. After a lot of involvement from the Israel Bitcoin Foundation and other influencers in the crypto world from Israel, bringing influence towards the public and moreover to the government for actions that will make the future clearly for the average citizen. Bitcoin and other coins are taking good steps towards being part as accepted currencies, although everything is possible and possible in the near futures; there are some positive hope and intentions from all sides so far. And just to prove how big part of a regulation is taken in Israel, the committee for examining the regulation of the issue cryptographic coins distributed to the public just released on March 2018 a document with almost 200 pages including full detailed information.
Many of important things were under discussion as written in this document, but one of the most important things was the application of additional legal frameworks under the Securities Law, including licenses platform and applicability of the law at management, advising and shared portfolio investments.
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