A Recent deal between Israeli Tax Authority ‘ITA’ and the largest Bitcoin Exchange in the country ‘Bits Of Gold’ took place a few days back according to which the authorities have requested to report Crypto transactions more than $50,000 USD. Bit Of Gold is a Tel Aviv based Crypto Exchange in Israel. As per this agreement of this deal, the authorities classify this as a part of government’s extensive effort to prevent use of cryptocurrency in the ongoing money laundering and other illegal activities in the country.
The Need For This Agreement
The agreement between the Tax Authority and Bits of Gold is a significant development as the ITA has no legal powers to compel any exchanges operating in the country to report on their clients. Bit Of Gold is the Biggest exchange in the country for Bitcoin and Ethereum.
However, the use of digital assets in increasing Money Laundering and Terror Financing, the authorities are compelling the existing digital exchanges in the country to report significant transactions immediately so that a check can be made if anything uncertain happens. Encouraged by this big success of agreement with the biggest crypto exchange in the country, the agency is looking to forge similar alliances and platforms to report significant crypto trade volumes.
Crypto Supervision Is Necessary
Late in this May, the Ministry of Finance in Israel ordered the supervision and promotion of all cryptocurrency services operating in the country as part of the government’s initiative to finalize the legal framework for activity in digital assets.
The move came after an Israel Security Authority (ISA) special committee recommended that digital currencies should not be treated as security when used exclusively for consumption. The decision means cryptocurrency can be used as payment without any rights involved.
A select committee tasked by the Israel Security Authority (ISA) with examining the status of initial coin offerings (ICOs) had determined that a digital currency does not qualify as security when used only for consumption, meaning as payment without any rights involved. Therefore as a part of this, some steps for its regulation and supervision are must to be implemented in the country.