The Israeli government plans to remove Bitcoin and cryptocurrencies from asset status and move them to currency. The names that developed the bill suggest that with this move, Israel will become one of the leaders in the field of crypto money.
The proposal to move Bitcoin to currency status was presented by the right-wing political party, Yisreal Beiteinu. The bill, prepared by the 4 members of the party, aims to regulate the taxation of crypto money transactions. With the proposed offer, it is aimed to add a new section within the scope of the Income Tax Decree and to include cryptocurrencies in the “digital currencies” category.
The bill also underlines that the Bitcoin and high-tech industry can develop the Israeli market. Knesset Member Oded Forer, one of the names that prepared the bill, said that Israel could become a leader in the cryptocurrency industry by paving the way for blockchain technology.
Required Conditions for Crypto Coins to Become a Currency
The bill does not only concern Bitcoin, but also many other cryptocurrencies. According to the proposal prepared, some of the features that cryptocurrencies should have in order to be evaluated in the status of “digital money put on the market” in the Income Tax Decree are as follows:
- It should be developed by a distributed computer network in compliance with regulations,
- Not designed primarily for use in payment transactions,
- It must be designed for general use, not commercial.
Israel Is Not A Stranger To Blockchain
At the beginning of 2020, the Israeli Securities Authority (ISA) made a blockchain call to the private sector after the committee it established to research blockchain and DLT technologies. The established committee published a report as a result of its research and explained the uses, advantages and disadvantages of blockchain technology.
After the report announced that blockchain technology can execute transactions quickly and at low cost, ISA asked companies to share their blockchain projects. ISA announced that it will evaluate submitted projects and can use it to improve capital markets.