According to a report published in an Israeli newspaper TheMarker, the Israeli government is coming up with a bill to make sure the authority can keep a track of any crypto holding exceeding 200,000 Israeli shekels which is of the same value as $61,000.
If the proposed bill gets passed, then it will become mandatory for any person who has either purchased cryptocurrency of equal to or more than the given value or has been holding the crypto of the mentioned value to file a report to the Israeli tax authorities through which they would not only be able to keep an eye on the transactions but also generate revenue through taxes.
The move has come in the wake of Israel’s fight against black money which is labeled as a ” war against black capital “. The government has been trying to fix every possible loophole in the system which gives money launderers and tax evaders chances to change their black money into white.
This proposed rule will apply to every Israeli citizen aged above 18 or anyone who has bought cryptocurrency worth $61,000 or more under the name of an under 18 years person.
“Virtual currencies have become commonplace among the public, and they are practically traded as an asset on exchanges. Digital coins can be subdivided into small units, transferred relatively easily by electronic means, and are not subject to surveillance or inspection. In these circumstances, virtual currency is a convenient and effective means of concealing income, accumulating undeclared assets, and money laundering.”
The government is expecting to generate revenue of around 30 million shekels ($9.2 million) through taxes if the proposed bill gets passed.
Meni Rosenfeld, chairman of the Israeli Bitcoin Association has written to the national tax authority head presenting a counter view. According to him, the volatility of crypto assets will make it difficult for the government to implement the bill in the right way.
With the prices fluctuating on such a large scale and so quickly, the crypto holders will be obliged to report to the tax authority one month and not the other month after falling below the threshold.
He further argued that this decision will create a database for all the crypto holders which steals their rights of being anonymous while owning crypto assets.