Israel's bill classifies bitcoin as a currency

In Israel, a bill has been introduced that provides for the classification of bitcoin as a currency.Hereofwrites the local edition of the Globes.

Four lawmakers from the "Our Home Israel" party presented the draft law "On taxation of sales of digital currencies" to the parliamentSeptember 22.They propose to bring several changes in the taxation of cryptocurrencies, including amendments to the existing legislation, to remove digital assets from the tax on the increaseCapital.

“Regulatory realities in Israel are not adapted tothe realities of this space. Digital currencies will remain the catalyst that will allow the country's high-tech industry to flourish and develop. "," reads the text of the document.

Currently, under Israeli law, bitcoinrecognized as an asset. This means that the sale of cryptocurrency and its conversion to fiat currency entails a capital gains tax of 25%.

The authors of the bill note that the country has alreadyhas a developed technology industry and has every opportunity to become a leader in the space of payments based on cryptocurrencies, which is especially important in light of the coronavirus pandemic that has hit the world.

“Now is exactly the time when the future of the economy is not defined. Digital payments can be promoted as a measure of social distancing ", They declare.

According to the Israel Blockchain Association, the number of active crypto companies in the country from 2018 to 2019 grew by 32% and reached 150 by December.

"Regulatory certainty will provide business confidence and allow more digital currencies to enter the Israeli market."They add.

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