Israel is considering recognizing Bitcoin as a currency, according to a new bill prepared by four members of the Nationalist Party, Yisrael Beiteinu, which aims to regulate the taxation of digital currency in the country.
Four members, led by Oded Forer, think the 25% capital gains tax on Bitcoin is obsolete. The draft law, which includes the replacement of the current Income Tax Regulation with a new version on the grounds that digital assets and transactions do not reflect their reality, made a lot of noise in the cryptocurrency world.
A new section will be added to the Income Tax Regulation, where the digital currency is evaluated as an asset. This will open the way for any digital asset to be traded or converted into fiat currencies that are subject to capital gains. The four members who prepared the draft law stated that they did;
“The regulatory reality in Israel is not adapted to the current reality in the field.” he said.
The new bill states that a distributed digital currency must have four properties in order to be considered a currency. Any cryptocurrency that meets the specified criteria, such as Bitcoin, can be considered a currency for both trading and taxation purposes.
First, there is the requirement to be operated by a distributed network of nodes, not a central entity such as government or financial institutions. The network should continue to function by consensus on development and managing operations.
Second, the cryptocurrency to be recognized as a currency must have a minimum market value of $ 287.4 million. In addition, the crypto money to be used must have a general purpose and must not be designed for specific uses or assets.
Israel Wants To Follow Technology Closely
In addition to reducing the taxation on Bitcoin, the new bill aims to strengthen blockchain technology in Israel, which already sees itself as a global high-tech powerhouse.
Members believe that Israel has the capacity to be among the leading countries in digital currency innovation, which will play a central role in the future of world economic domination.
In this period when the economic future remains uncertain and digital payment options are encouraged due to social distance conditions, this move of Israel is both for the country.