Ministry of Finance, Israel, published a new statutory requirement for a proposal to place cryptocurrency users under increased scrutiny. The new Israel bill aims to track crypto holdings above $61K.
The bill states that investors would require to report crypto holdings exceeding 200,000 new Israeli shekels (around $61,000) to tax authorities.
The proposed law would make it mandatory for cryptocurrency users who have either purchased 200,000 Israeli shekels ($61,000) worth of cryptocurrency to file a report with the Israeli tax authorities. The law would also mandate those whose crypto holdings are currently worth the same amount and above.
The reporting obligation would apply to any Israeli citizen who has held, personally or on behalf of a child under 18, cryptocurrency worth this amount or above on one or more days of the tax year.
The bill states that: “Virtual currencies have become commonplace among the public, and they are practically traded as an asset on exchanges. Digital coins can be subdivided into small units, transferred relatively easily by electronic means, and are not subject to surveillance or inspection. In these circumstances, virtual currency is a convenient and effective means of concealing income, accumulating undeclared assets, and money laundering.”
Also Read: Israel’s Central Bank Initiates Digital Shekel Payment Challenge
The proposed amendment follows the Israel central bank’s testing of the digital shekel. The draft bill also contained penalties for the use of cash. As financial authorities attempt to stamp out Israel’s “black economy.”
The Israeli Bitcoin Association (IBA) and other crypto advocates oppose the bill. If approved, the introduction of this measure would raise state revenues by an estimated 30 million shekels ($9.2 million) in 2022 through additional tax.
