Posted 2 years ago | by Ben Armstrong
Israel Banks Stonewalling Bitcoin Investors
In a strange story coming out of Israel, banks are preventing Bitcoin holders from being able to pay their taxes. They are doing this out of fear that cryptocurrencies like Bitcoin may have only been used for money laundering & illicit activities... because that's all Bitcoin is used for ya know! When politicians use this tired narrative it's sad, but when banks are using it to make honest citizens run afoul with the Israel Tax Authority then it's dangerous.
Israeli Bitcoin investors have had their deposits blocked from their banks. This means that if they were to "cash out" with whichever exchange they use, then the bank is stopping that money from entering into the bank ecosystem.
One early Bitcoin investor that has happened to is Ron Gross. He went so far as to start keeping his profits in a Swiss bank account out of fear of the Israeli banking system's unreasonable Bitcoin policies. Even going to that extent, he is still not able to transfer his funds from the Swiss account to his Israeli one. The banks even block those transfers.
Once someone says the word "Bitcoin" the Israeli banks freeze up and make banking extremely difficult for a customer. In fact, Ron Gross has actually had liens placed on his home, bank account, and scooters by the tax authority. It seems to reason that the Israel Tax Authority needs to take action to prevent these banks from withholding funds from customers. The Israel Capital Gains Tax is 25% for individuals and 47% for corporations. That's a lot of money they are missing out on.
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