Decoding the relationship between Israel and cryptocurrencies.

Introduction

The cryptocurrencies are widely being adopted in many countries throughout the world with a few exceptions. The cryptocurrencies are either regulated are completely restricted for its operations, due to the uncertainties that the government possesses with respect to the legal implications of the booming financial domain. However, the underlying Blockchain Technology is recognized by all the countries in the world with negligible countries naive with its applications. In fact, some of the other nations have exclusively taken steps in order to improve and discover the applications of the Blockchain Technology in various other domains apart from the traditional financial sector. Let us read about Israel and Cryptocurrencies Scenario.

Israel and cryptocurrencies

Israel is looking forward to making the best use of the Blockchain technology and become a leader in terms of innovation. It even aims to initiate an international financial center for the development of initial coin Offerings, which is the predominant factor affecting the development of the country’s securities market. The head of Israel securities authority, Shmuel Hauser, quoted that strict as well as the supportive regulatory framework was the main requirement for the development of the cryptocurrencies in the country. He even said that the Bitcoin investment rush reminds him of the Gold Rush of the 19th Century which the world had experienced.

Israel and cryptocurrencies taxation

Israel and cryptocurrencies taxation; The cryptocurrencies would be considered as a property in order to gain access to taxation. This was confirmed most recently in Feb 2018. On the other hand, the cryptocurrencies are being taxed by the Securities and Exchange Commission of the US since the year 2014. In particular, all the crypto commodities would be taxed through the Capital Tax Gains, which would be 25% for all the private investors and 47% marginal rate for all the business organizations. It is worth maintaining that the country has effectively excluded the private investors from the Value Added Tax but the business corporations dealing with the crypto domain are not. It even made clear that the miners would be regarded as dealers for VAT taxation.

Israel and cryptocurrencies: Further insights

The Israel tax authority is also looking for ways to tax the process of the initial Coin Offering under the VAT domain. However, the official circular makes no mention of the VAT taxation with respect to the ICOs. the Israeli government is very optimistic with respect to the cryptocurrencies and also is looking forward to initiating its own digital cryptocurrency coin and initiatives have been witnessed to be taken in December 2017. The precise reason for the need of digital exclusive digital cryptocurrency is to keep track of all the illegal activities that occur within the country’s financial economy.

Israel and cryptocurrencies: Is it the new crypto hub?

The country is also well known for their innovative technological advancements and is deemed to be the “Start-up Nation”. In the year 2017, the Israeli venture capitalist was witnessed to have been invested almost $5 billion in the capital. This amounts to the 10% of the total funds raised in China in a year. One of the biggest banks of Israel, Hapoalim, collaborated with Microsoft in the year 2017, for the innovation and development of the Blockchain Technology as well as cryptocurrencies in their banking sector.

Israel and cryptocurrencies: The Diamond Exchange

Israel is also famous for the Diamond Exchange which is one of the only three worldwide. The other two being in Mumbai and Antwerp. The exchange is all set to launch a cryptocurrency coin of its own, in order to improve the speed and capabilities of the transactions. Precisely two cryptocurrencies, with the name Cut and Carat, interestingly are backed by precious gems and stones in order to assure reliability to its customers. Israel is also famous for the export of Gems and other precious stones throughout the world and had exported worth $7 billion of them in the year 2017.

Israel and cryptocurrencies: Signing off

The technological advancements with respect to the Blockchain technology are being tried in various other fields other than the financial sector. Apart from Switzerland’s Zug Valley, Israel is all set to become the most preferable hub for all the cryptocurrency operations, due to the supportive regulatory Framework in the country. Israeli Bitcoin Foundation, Sirin labs, as well as Bancor network, are some of the major initiatives in the field of Blockchain Technology having its origin from Israel.