
The Israeli Knesset, the country’s parliament, may soon exclude foreign residents from paying taxes on income obtained from the sale of cryptocurrency assets, following in the footsteps of the UK. The choice aims to make the country profitable in order to maintain the bitcoin ecosystem. With this, Israel hopes to portray itself as a country that supports cryptocurrency in order to draw in investors to support its economy. It should be noted that despite its notorious volatility, the cryptocurrency market valuation reached over $3 trillion (approximately Rs. 2,47,38,300 crore) in November 2021.
According to a government record, Simcha Rothman, Ariel Kellner, and Dan Ilouz of the Knesset have submitted a measure to the Israeli parliament that would include this clause. The government of the nation has realised that the crypto industry is flourishing to its full potential in other countries and that Israel should also get on the Web3 bandwagon.
“Israel firmly supports cryptocurrencies. Finance Minister Bezalel Smotrich has energised the local industry and sent a clear invitation to foreign investors and corporations to conduct business on our borders, similar to Rishi Sunak in the United Kingdom and politicians throughout Europe, according to the bill’s explanatory note.
In preparation for 2023, the UK established a law exempting foreigners from paying taxes when they purchase cryptocurrency through local British crypto exchanges. Announcing this rule for the first time in December of last year, Sunak set the law’s implementation date for January 1, 2023. This choice was seen as a step forward by the UK in creating a favourable environment for the growth and development of the crypto industry.
In order to provide the proper regulations to protect Israel’s crypto community, the finance ministry of Israel is currently evaluating the risks and difficulties brought on by the unstable business. Among other things, the government there wants to tax cryptocurrency held by its people abroad.
In order to make decentralised autonomous organisations (DAOs) more “free, transparent, and independent,” the nation is also likely to establish a commission tasked with regulating the creation and operation of DAOs that are built on blockchains rather than servers.
28 percent of Israelis are said to be crypto asset owners, according to a Gemini cryptocurrency exchange report from last year. The Tel Aviv Stock Exchange (TASE) said back in October that it was considering setting up a trading platform for digital assets based on blockchain technology.