Just like every other government all over the world, Israel tax agency is applying pressure on bitcoin and crypto companies to make their operations transparent to them.
A recent instance of this comes from Israel, where a local exchange with over 50,000 clients has been convinced to report its bigger traders to the national tax authority.
In response to the national tax authority, a cryptocurrency exchange Bits of Gold, based in Tel Aviv has agreed to report on its ‘heavy’ users to the Israel Tax Authority, according to media reports from the country.
Bits of Gold will pass on information to the tax authority on anyone who traders a total of $50,000 or more over a twelve-month period. It agreed to this after the authority carried out an onsite inspection of its operations at the exchange’s offices, targeting information on its bigger clients.
Although, according to the law of the land no cryptocurrency exchange is under coercion to reveal their clients without their agreement and court precedents back this up.
Furthermore, according to the reports, this agreement with Bits of Gold is a sign of things to come as the Israeli tax authority now plans to approach more local companies and exchanges trying to reach similar arrangements. And this is just the latest initiative by the Israel Tax Authority in the crypto field.
However we should note that no cryptocurrency exchange is bound by law of the land to report his clients. If it is so therefore, Should crypto exchanges agree to report on their clients if they are not compelled by law? Share your thoughts in the comments section below.