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Bits of Gold – Local Israeli Cryptocurrency Exchange – agreed to provide information to the country's tax authorities on deposits and commercial activities.
Israel Tightens the Knot
In what appears to be a step towards tightening the cryptocurrency trading environment in Israel, local tax authorities have reached an agreement with a Bits of Gold local digital exchange . As reported by local media Calcalist the Cryptocurrency Exchange agreed to transmit information regarding larger deposits.
The purpose of this agreement is to prevent tax evasion and money laundering. . Apparently, the anonymized and encrypted nature of cryptocurrencies intimidates the regulators of the country.
Standard AML or Targeted Approach?
It is important to note that, according to the current Israeli laws against money laundering, all deposits exceeding 50,000 shekels (about $ 15,000), should be reported to the United States. Iranian Authority for Money Laundering and Terrorist Financing (IMPA). Holders of these accounts are invited to verify the legitimacy of these products, which seems to be a common practice, accepted in a wide range of countries.
The new agreement, however, requires Bits of Gold, which hosts more than 50,000 registered users, to transmit this information to the authorities. The cryptocurrency exchange must report transactions that have exceeded $ 50,000 in the last 12 months.
It should be noted that the country's tax authorities have audited the same exchange of cryptocurrency, according to local media. A person familiar with the case allegedly revealed that the audit did not target the company itself, but rather it aimed at large-scale customer information.
Last January, the Israeli Tax Administration released tax guidelines that considered cryptocurrencies as Bitcoin as badets. As such, the profits from their trading is subject to a 25% tax while cryptocurrency exchanges are also required to pay 17% VAT.
Do you think that Israel's approach is justified? Do not hesitate to let us know in the comments below.
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