Israel's crypto owners to disclose their holdings for tax purposes
Israel’s revenue collector, the Israel Tax Authority (ITA), headed by Eran Yaacov, has reportedly asked dozens of Israelis who own digital currencies to disclose their assets for taxation purposes.
In addition to that, the ITA has also reached out to local cryptocurrency exchanges as well as those based outside the country. According to the Globes report, the ITA is looking to gather information about Israelis trading in cryptocurrencies.
At the same time, the Tax Authority also received data about the Europe-based funds and accounts held by Israelis.
This process is in line with E.U. Common Reporting Standards (CRS) regulations for the automatic exchange of financial account information. ITA seems to have a yet different (FATCA) agreement with the US Internal Revenue Service (IRS) that is conveying additional data accordingly.
Although governments around the world are actively trying to regulate the growing crypto industry, the question of crypto-related regulations remains unclear. The U.S. authorities have taken steps to regulate the crypto industry in the country, among which there were proposals to tax cryptocurrency incomes. Some countries, like South Korea and Switzerland, have taken progressive action to regulate the industry.