Category Archives: Bits of Gold

Auto Added by WPeMatico

Major Israeli Exchange to Pass on Client Crypto Details to Tax Office

A local Israeli cryptocurrency exchange has agreed to pass on client information to tax authorities as part of a government drive to tighten cryptocurrency regulations, according to local Israeli news source Calcalist.

Major Israeli crypto exchange Bits of Gold will pass on details relating to large cryptocurrency deposits over $50,000 total in the last 12 months. The move by the government is reported to be aimed at reducing money laundering through crypto exchanges

Israel’s Prohibition on Money Laundering Law has required withdrawals and deposits over NIS 50,00 ($14,700 at time of press) be reported to the country’s Money Laundering and Terror Financing Prohibition Authority (IMPA) with verification required from investors regarding the legality of deposits made. Taxation on cryptocurrency trading profits has recently been set at 25% with exchanges paying 17% VAT

Privacy laws are clearly being tightened as in the past courts have often backed citizen’s rights to privacy in financial matters concerning tax details. Bits of Gold had recently been audited although it’s been reported that the tax authorities were seeking information regarding large investors who had used the company.

Authorities still regard digital currencies with a degree of suspicion, despite better consumer protection and increasing global regulation of the space. Earlier this year Israel’s finance minister Moshe Kahlon signed a draft legislation which has been introduced to combat cryptocurrency money laundering in the country. The money laundering legislation, which is an addition to an existing law, will now include digital currency for the first time.

There have been frequent cases with many of Israel’s banks refusing to accept cryptocurrency-related money, and on two occasions banks were forced to accept the money after being taken to court. Earlier in the year Israel’s largest bank, Bank Hapoalim, was found to have unlawfully blocked a money transfer of USD 195,00 coming from a European cryptocurrency exchange platform, citing unsubstantiated claims of suspected money laundering and terrorist financing.

An IMPA draft bill from May of this year has stipulated that, if passed, financial entities will be required to keep 5 years-worth of trading records on each client including their IP addresses, according to ClavinAyre.com

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy:Pixabay

The post Major Israeli Exchange to Pass on Client Crypto Details to Tax Office appeared first on BitcoinNews.com.

Israel’s New AML Laws Add Clarity for Crypto Investors

Israel’s finance minister Moshe Kahlon has signed draft legislation which has been introduced to combat cryptocurrency money laundering in the Middle Eastern state, writes Israeli business source Globes.

The new draft notice is an addition to an existing law, due to be introduced into legislation in June of this year. The money laundering legislation will now include digital currency for the first time and explains:

“The definition of a service in connection with financial assets is being expanded beyond currency services, to includes all activities and services performed by a business in connection with financial assets that does not include credit.”

The digital currency assets are described as “financial services other than tangible assets or standard financial means, in a field that has been developing in recent years”, referring quite clearly to cryptocurrencies.

Manny Rosenfeld, head of the Israel Bitcoin Association, was optimistic about the new draft explaining that such new regulations will add a much-needed degree of certainty into Israel’s crypto space and was impressed how quickly the government has responded to their request for changes several weeks ago:

“The new order will give certainty for those involved in the field, and will define rules that are permitted and forbidden, which will enable banks and financial institutions to know who is compliant with the law, and whose money they can safely receive.”

This is the second fast reaction this year by the Israel Anti-Money Laundering Authority. An earlier case this year initiated by tech company Bits of Gold won its application for clearer legal definition, although the company’s risk manager, Yal Naaman, was dismayed that the government agency was unable to specify in its description reference to biometric face recognition. However, Naaman was pleased with the new law:

“The Israel Anti-Money Laundering Authority has acted quickly and we hope that its move will bring order to the market. This would enable the identification of a customer without requiring physical access. We call on the authority to add this to the final order.”

There have been frequent cases many of Israel’s banks refusing to accept cryptocurrency-related money, and on two occasions banks were forced to accept the money after being taken to court. earlier in the year Israel’s largest bank, Bank Hapoalim, was found to have unlawfully blocked a money transfer of USD 195,00 coming from a European cryptocurrency exchange platform, citing unsubstantiated claims of suspected money laundering and terrorist financing.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Israel’s New AML Laws Add Clarity for Crypto Investors appeared first on BitcoinNews.com.

Israeli Court Overturns Bank’s Refusal of Crypto-Related Transaction

Israel’s largest bank, Bank Hapoalim, has been found to have unlawfully blocked a money transfer of USD 195,00 coming from a European cryptocurrency exchange platform, citing unsubstantiated claims of suspected money laundering and terrorist financing.

The case was presided over by Judge Limor Bibi, who concluded that Bank Hapoalim did not have any substantial evidence to back up their accusations of the exchange platform, as reported by Coingeek. Furthermore, the client in question had even provided documents showing both evidence of the source of the funds and details of the transactions having been filed with the Israel Tax Authority.

Upon proof that the funds were AML compliant, Bank Hapoalim was obliged to facilitate the transaction. Although the bank requested a gag order to protect the bank from bad publicity, the court declined this appeal.

In a comment made by the complainant’s law firm, Doron, Tikotzky, Kantor, Gutman & Amit Gross, the growing friction between financial institutions and clients was noted. This can be attributed to the refusal of Israeli banks to cooperate professionally with clients dealing in cryptocurrencies.

The firm spoke out, saying: “Recently, we have witnessed an extreme escalation in the banks’ fight against Bitcoin and the other virtual currencies. In what appears to be a planned policy of targeted assassination, the banks are preventing their customers from returning foreign money originating in virtual currencies to their Israeli accounts, even though the clients wish to declare the movement of the funds and pay their taxes according to the law.”

The statement detailed the importance of setting a precedent that necessitates a policy of cooperating with virtual currency transactions that are AML compliant.

Bits of Gold v. Leumi Bank

Israel’s Supreme Court was forced to step in earlier this year in the case of cryptocurrency exchange Bits of Gold v. Leumi Bank. The court decision ruled in favor of Bits of Gold, declaring there was no solid ground for the bank to suspend the account in question. An order from the court was issued, temporarily prohibiting the bank from restricting the exchange’s banking services.

At the time of ruling it was appreciated as a landmark win for cryptocurrencies in the country, setting a precedent that prohibits banks from refusing services that are involved in crypto without cause. It appears, however, that the challenge from banks in Israel is far from over.

 

*Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom*

*Telegram Alerts from BitcoinNews.com at https://t.me/bconews*

The post Israeli Court Overturns Bank’s Refusal of Crypto-Related Transaction appeared first on BitcoinNews.com.