Israeli Draft Bill Would Nix Hefty Capital Gains Taxes on Bitcoin

The draft bill would define bitcoin and other cryptos as "currency" instead of an "asset" for tax purposes.

Sep 24, 2020 at 9:21 p.m. UTC
Updated Sep 14, 2021 at 10:00 a.m. UTC

Israeli bitcoiners take note: A handful of Knesset members are seeking to ease Israel's hefty taxation of cryptocurrencies.

Four Knesset members from the nationalist Yisrael Beiteinu party on Tuesday introduced a draft bill that would effectively end Israel's 25% capital gains tax on bitcoin by redefining certain "distributed digital currencies" as currency, instead of a taxable asset.

  • The proposed re-designation applies to cryptocurrencies with: a distributed issuance network, a 1 billion shekel ($288 million) market cap or more, a general use purpose and an independent origin story.
  • Bitcoin and certain other cryptocurrencies meet these criteria, according to the bill authors: Oded Forer, Evgeny Sova, Yulia Malinovsky and Alex Kushnir.
  • "This regulatory clarity will create commercial certainty and allow more digital currencies to enter the Israeli market," the lawmakers wrote in their proposal.
  • Defining cryptos as currency would simplify Israeli bitcoiners' tax burden and make qualifying coins a more attractive payment mechanism, according to the measure.
  • The Yisrael Beiteinu party is part of Israel's parliamentary opposition, making passage unlikely without backing from members of the majority.
  • Forer did not respond to a request for additional comment.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
What Davos Man Thinks of Bitcoin and Crypto This Year

The annual WEF conference has begun, albeit late and in a more subdued fashion.

The annual WEF conference has begun, albeit late and in a more subdued fashion.

CoinDesk - Unknown
2
CoinDesk - Unknown
Market Wrap: Bitcoin Unable to Hold $30K, Altcoins Mixed

BTC declined by 2% over the past 24 hours, while Fantom's FTM token rallied by as much as 16%.

BTC declined by 2% over the past 24 hours, while Fantom's FTM token rallied by as much as 16%.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto Industry Battles to Exempt NFTs, DeFi From Tax Reporting Rules

The OECD is trying to introduce new rules to stop crypto from being used to stash assets out of sight of the taxman.

The OECD is trying to introduce new rules to stop crypto from being used to stash assets out of sight of the taxman.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin mantiene el soporte en $27K-30K, con resistencia en $35K

Es probable que exista un breve rebote hacia una zona de alivio, similar a lo que ocurrió a finales de febrero y finales de marzo.

Es probable que exista un breve rebote hacia una zona de alivio, similar a lo que ocurrió a finales de febrero y finales de marzo.

CoinDesk - Unknown