Israeli Exchange To Share Customers’ Transactions Details With Tax Authorities

One of the largest Israeli cryptocurrency exchanges, Bits of Gold, recently partnered with the tax authorities in Israel in order to share customers’ transaction details. As stated in the terms of the agreement, the exchange will provide information of clients who have made transactions greater than $50,000 over the last 12 months, according to the local publication Calcalist and its reports.

Even though the Israeli law clearly dictates that brokerages are required to pass on information about large and suspicious transactions to the IMPA (Israel Money Laundering and Terror Financing Prohibition Authority), they are not obligated to do the same with the tax authority due to privacy concerns.

With over 50,000 registered users, Bits of Gold has agreed to pass on client information to the tax authorities. They, on the other hand, will be responsible for checking the transactions and investigating potential cases of money laundering and/or tax evasion.

Meanwhile, the government of Israel and the Israel Tax Authority first issued the guidelines for cryptocurrencies in early 2017 – where Bitcoin and other altcoins have been deemed as assets wherein retail, investors and miners are levied fixed tax rates.

In 2018, the authorities confirmed that crypto investors are subject to capital gains taxes. Ever since then, Israel is strengthening its law regarding cryptocurrencies.