Bits of Gold — a major Israeli cryptocurrency exchange, has agreed to pass information to the tax authorities of the country for deposits and trading activities of its clients. It seems that Israel takes the more stringent position regarding cryptocurrencies.
Presumably, the purpose of the agreement is the prevention of acts of tax evasion and money laundering. Apparently, the anonymous and encrypted nature of crypto scares the regulatory bodies of the country.
It is important to note that, according to current Israeli law on combating money laundering, all deposits that exceed 50 000 shekels (примерно15 000$. USA), needs to be communicated to the Office for the Prohibition of money Laundering and Financing of Terrorism in Israel (IMPA). The account holders are requested to check the legitimacy of revenues, which is a common practice in many countries.
However, the new agreement requires that Bits of Gold, a user base exceeding 50,000 people, and passed such information to the authorities. Cryptocurrency exchanger should report the transaction that exceeded 50 000 USD in the last 12 months.
The tax authorities already audited this exchange, according to local media. However, there is a large probability that the audit was intended to check how many activities of the exchange, how much for compiling a list of its major customers.
Recommendations on taxes from the tax authority of Israel, first published in January 2017. Cryptocurrency recognized asset that is subject to a fixed tax rate on business. Tax on profit from trading digital currency users is 25 percent, while the stock exchanges are also required to pay tax at 17 percent of the profits.