Israeli Tax Authority Requires Bitcoin Exchange to Report Large Deals
The Israeli Tax Authority (ITA) has entered a deal with Bits of Gold, the largest Bitcoin company and the country’s leading exchange for Bitcoin and Ethereum, requiring the Tel Aviv-based platform to report digital currency transfers over $50,000. The Tax Authority stated that this arrangement is part of the government’s sweeping efforts to prevent money laundering and other illegal transactions using digital assets. Although the ITA does not possess legal powers to compel exchanges to report on their clients, the Israel Money Laundering and Terror Financing Prohibition Authority is enforcing the reporting of significant transactions. Following a thorough probe of Bits of Gold, the agency secured this agreement and is now looking to establish similar alliances with other cryptographic companies and platforms to monitor substantial cryptocurrency trade volumes.
Israel seeks crypto supervision
In May, the Israeli Ministry of Finance ordered the supervision and promotion of all cryptocurrency services operating in the country as part of the government's initiative to finalize the legal framework for activity in digital assets. The move came after an Israel Security Authority (ISA) special committee recommended that digital currencies should not be treated as security when used exclusively for consumption. A select committee, tasked by the ISA with examining the status of initial coin offerings (ICOs), determined that a digital currency does not qualify as security when used only for consumption—that is, as payment without any associated rights.
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