Posted 4 months ago | by @devadmin
The Israeli Tax Authority (ITA) is now requiring that Israeli citizens disclose their cryptocurrency hodlings for taxation purposes, Globes reported.
According to the report, Israeli citizens who own digital currencies have recently received notifications from the ITA telling them they must fully disclose their digital assets for tax purposes.
The ITA has warned its citizens that they have obtained data from cryptocurrency exchanges in Israel and outside of the country in order to obtain the data and information regarding the accounts held.
ITA stated they applied EU Common Reporting Standards regulations and the Foreign Account Tax Compliance Act which shared U.S. Internal Revenue Service data with Israel, the report added.
ITA states that investors in digital currencies are subject to a 25% capital gains tax, as long as their activity does not turn into a commercial enterprise.
This comes on the heels of recent regulation in France and pending regulation in the U.S. for rigorous know-your-customer (KYC) requirements for all crypto transactions, as Bitboy Crypto reported.
In general, a spokesperson for U.S. Treasury Secretary Steven Mnuchin expressed there is a “need to regulate digital currencies.” Further, the statement “reiterated support for the G7 joint statement on digital payments issued in October.”
The previous statement, published on October 13th, expressed that the G7 all agreed that digital payment services “should be appropriately supervised and regulated to address challenges and risks related to financial stability.”
The U.S. has since published stringent KYC proposal laws for “self-hosted” i.e. private wallets. The goal for the U.S. is to restrict money services businesses from dealing with self-hosted wallets. The report was published by the U.S. Treasury’s Financial Crimes Enforcement Network, or FinCEN arm as Bitboy Crypto reported. The regulator announced recommended rules demanding enrolled crypto exchanges to verify the “identity of their customers, if a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000.”
Now, Israel has joined the list of countries that want to require their citizens to report all crypto transactions and implement strict KYC laws to prevent money laundering and enable taxation of capital gains.
Bitcoin is currently trading at [FIAT: $26,887.36] UP +3.9% in the last 24 hours according to Coingecko at the time of this report.