Cryptocurrency exchange Bits of Gold based in tel Aviv, agreed to report the large traders in the Tax administration of Israel.
Bits of Gold will transmit the controller data about all users who have made transactions in the amount of $50 thousand for the last 12 months. The exchange has agreed to comply with the requirements of the tax after the authorities have inspected the company’s offices.
Cryptocurrency exchanges work in Israel are now required to report large transactions to the Commission on the prevention of money laundering and financing of terrorism. However, the Tax administration is not easy to get this information because of laws protecting the privacy of citizens. Moreover, the regulator has no legal right to demand from companies information about their customers without their consent.
According to industry experts, the agreement between the IRS and Bits of Gold is a sign that the Agency plans to engage more local kryptomere and companies.
We will remind that in February, the Tax authority introduced new rules regarding distributed means of payment. Now virtual currencies are assets, and their sale is the taxable event (tax on capital gains).