Israel Regulators Consider Bitcoin as a Currency

Israel Regulators Consider Bitcoin as a Currency 1024 500 Crypto Rand Group

Israel bitcoin

Israel updates Bitcoin’s regulatory status

Bitcoin has not finished revealing all its secrets. Satoshi Nakamoto himself, may not have foreseen some of his baby’s current developments. States, for their part, must now take a stand in favor of or against cryptomoney in general. Bitcoin and its allies still have strong allies like Israel.

Bitcoin is a tax haven in Israel

Bitcoin and Altcoins are gaining ground, but we still don’t know the true nature of Bitcoin: is it a currency, an asset?

In Israel, 4 members of the Knesset, MK Oded Forer, Yevgeny Soba, Yulia Malinovsky and Alex Kushnir, have proposed an amendment to the existing tax law so that cryptomoney is considered a currency and therefore not subject to capital gains tax.

Current tax policy imposes a 25% tax on the conversion of tokens into fiat currency; this rate is 15% for short-term lenders.

The proposed amendment explains that the current regulations are not adapted to the existing reality; cryptomoney is presented as an engine of growth that allows the Israeli high-tech industry to develop.

If the proposal is adopted, cryptomoney will be taxed at a much lower rate.

Currently, individuals with an income of less than INS 75,720 – about USD 21,000 – are taxed at 10%.

Cryptos were invented for COVID-19

MK Forer believes that the government should consider blockchain technology as a solution for digital payments, especially in the context of the pandemic.

The Knesset has recently approved new restrictions, as nearly 7,000 people tested positive to Covid-19 in Israel within 24 hours.

The spectre of a second global containment continues to weigh on the performance of financial markets.

In the event of a second wave confirmed by governments, cryptos will have the opportunity to shine or disappoint, as a cover against another market crash.

Israel’s position will certainly influence the US parliament’s position on cryptomoney. They are well on their way to winning the political war in the North. We could soon see a regulatory pandemic in favour of Bitcoin and Altcoins. A second wave of COVID-19 would reveal the strengths and weaknesses of fiats, traditional assets and cryptomoney.

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