Crypto owners are obliged to reveal their assets in Israel

by in Cryptocurrency News

Israel

The Israel Tax Authority (ITA) has required crypto owners to reveal their assets and profits.

According to the newspaper, dozens of Israelis got notifications from the ITA. The department also sent requests to local and foreign crypto exchanges with the requirement to transfer information about the accounts of citizens.

ITA cited EU General Reporting Standards and the Foreign Account Tax Compliance Act as the basis for obtaining data from trading platforms. According to the latter, the data of the US Internal Revenue Service is also transferred to Israel.

Experts explain the ITA's interest in industry representatives by the lack of money in the budget and new Bitcoin records. According to the authorities, many traders should cash out amid rising quotes.

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In 2018, the tax authority equated cryptos with financial assets by obliging individual investors to pay a capital gains tax of 25%.

In 2019, Israeli crypto investors faced the problem of paying taxes due to banks' reluctance to accept funds received from transactions with digital assets. The country's bitcoin association demanded through the courts that the banks explain the reasons for the refusals.

In September 2020, the members of the Israeli Knesset called for the exemption of holders of BTC and other cryptocurrencies from paying tax.