At least four members of Israel’s legislature issued a recommendation regarding considering cryptocurrencies as fiat money in tax terms.
As highlighted by various local media outlets, Knesset members MK Oded Forer, Yevgeny Soba, Yulia Malinovsky and Alex Kushnir proposed on September 22 that the government body amend existing tax legislation so that digital currencies such as bitcoin were not subject to capital gains tax.
“The regulatory reality in Israel does not adapt to that in the field. Digital currencies will continue to be a growth engine that will allow the Israeli high-tech industry to flourish and develop,” states part of the proposal.
If this is finally approved, digital assets will be taxed at a lower rate than the one currently used.
Bureaucracy has proven to be a very significant obstacle to digital currencies in Israel. Despite the recent growth of blockchain and cryptocurrency companies, pro-crypto regulators have been in a constant battle since the government declared in 2018 that it would treat crypto as an “asset” in tax terms.