Sunday, November 29, 2020
Home Cointelegraph News Israeli regulators propose Bitcoin be taxed as a currency, not an asset

Israeli regulators propose Bitcoin be taxed as a currency, not an asset

Four members of the Israeli legislature are recommending that digital currencies be treated more like fiat for tax purposes.

According to a report from Israeli news outlet Globes, Knesset members MK Oded Forer, Yevgeny Soba, Yulia Malinovsky, and Alex Kushnir proposed on Sept. 22 that the government body amend existing tax law so that digital currencies like Bitcoin (BTC) would not be subject to capital gains taxes. Under current income tax policy, Bitcoin is treated as an asset and taxed 25% whenever individuals convert their tokens into fiat, or 15% for short-term lenders.

“The regulatory reality in Israel is not adapted to the existing reality in the field,” stated the bill. “[Digital currencies] will continue to be a growth engine that allow the Israeli high-tech industry to flourish and develop.”

Should the proposal become law, digital currencies could be taxed at a substantially lower rate. In 2019, individuals in Israel with income under 75,720 INS — roughly $21,781 as of this writing — were only taxed at a rate of 10%.

MK Forer said the government body should consider blockchain technology as a solution for digital payment options during the pandemic. Just today, the Knesset approved another nationwide lockdown starting on Friday after more than 7,000 people were diagnosed with COVID-19 in Israel within a 24-hour period.

“It is possible to promote digital payment options due to the social distance that has been forced on us,” Forer said. “When the economic future is unclear, we need to give growth engines a boost.”

Bureaucracy has proved to be a major roadblock for digital currencies in Israel. Despite the recent growth in blockchain and crypto firms, pro-crypto regulators have had an ongoing battle since the government declared in 2018 it would treat crypto as an “asset” for tax purposes. In 2019, an Israeli court ruled that an investor had to pay capital gains tax on $830,000 in Bitcoin, arguing currencies in the country had to have some physical manifestation under current law.

Popular Articles

XRP Army Hit By New Scam Promising Community Incentives & Support

Quick take: The XRP army has been targetted once again by scammers As with previous XRP scams, they promise community incentives and support for XRP holders The...

Ethereum’s Price Could Rapidly Rise to $750 – Crypto Analyst

Quick take: According to crypto analyst MagicPoopCannon, Ethereum could be on a path to test $750 If $750 is broken, Ethereum could very well push higher...

Binance Coin, Waves, Enjin Price Analysis: 29 November

Some of the market’s large-cap altcoins initiated a recovery on the charts after seeing their value slashed in a matter of hours, following Bitcoin’s...

Guggenheim Partners may be the next big player to bet on Bitcoin

Over the past few months, the crypto-market has witnessed an influx of institutional investors, most of whom have set aside significant allocations in favor...

How Ethereum Could Stage Rally To $600 If It Clears $550

Ethereum started a fresh increase from the $480 support zone against the US Dollar. ETH price must surpass $550 to start a strong upward...

Peafarm – NFT Crypto Games on Tron 4.0 Platform, Airdrop Is Now Live

PRESS RELEASE. NFT (non-fungible token) had been used in the construction of decentralized gaming platforms, issuing proprietary tokens, anti-copy and copyright related issues. It...