Israel Seizes Millions in Crypto from Iranian Military

According to reports by the Israeli Defense Ministry, the Israeli government has seized millions of dollars in digital funds from accounts intended for use by [...]

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Israel Turns to DAOs after Proposing Rules for Stablecoins, Crypto Investments

Israel is now looking into decentralised autonomous organisations (DAOs) in its latest efforts to bring the digital assets industry under its watch. DAOs are blockchain-based organisations that operate based on rules coded into smart contracts. Uniswap, Augur and MakerDAO are top examples of such organizations.

Israel Eyes DAO Regulation

On Wednesday, the Israeli Ministry of Finance announced the appointment of a multi-agency team tasked with recommending rules for the regulation of DAOs. The team will look at various areas of DAO regulation, including corporate status determination and taxation.

Regulating this type of organization will help “to create legal certainty, reduce risk factors in activity conducted through DAOs and realise the potential for the Israeli economy,” the ministry explained.

As part of efforts towards DAO regulation, the ministry has called on academics, civil society organizations and other industry stakeholders to submit proposals on various areas pertinent to the regulation of DAOs. Specifically, the ministry wants the public to submit materials on the nature of DAOs, their benefits over traditional corporations, the major risks they pose, as well as advantages and threats to the Israeli economy.

Additionally, the ministry is calling for submissions related to registration requirements for recognizing DAOs as legal entities, minority holder protection, application of existing financial rules to DAOs, and money laundering risks posed by DAO activities. The public has until September 9, 2023, to put forward their recommendations, the ministry noted.

Crypto Regulation in Israel

In recent years, Israel has sought to regulate the digital assets industry. Earlier this month, Israeli lawmakers conducted a preliminary reading for a new bill that proposes the exemption of foreigners from capital gains taxes; that is, taxes on profit made from their cryptocurrency activities.

In March, the Bank of Israel proposed rules for permitting stablecoin use in the country while managing risks and protecting investors. The apex monetary authority also called for public comments on the proposals.

A month earlier, the Israel Securities Authority (ISA) also published a proposal calling for an amendment to the applicability of the country’s securities laws to cryptocurrencies. The securities watchdog noted that while cryptocurrencies serve as a financial investment, they are not included in definitions found in the country’s laws.

Since August 2017, Israel has created a least three crypto-related committees to look into various areas of crypto regulation and adoption in the country. The first committee, which was established in August 2017, called for a balance between encouraging technological innovation and preserving the interests of the investing public.

Furthermore, while the second committee worked on rules for promoting and establishing rules for the digital asset markets in Israel, the third committee examined the ISA’s policy on investment products in digital assets.

Meanwhile, Israel is not missing in the global race towards a central bank digital currency (CBDC) launch. However, Finance Magnates reported that the Western Asia nation has tied the launch of its CBDC, the digital shekel, to similar moves by global economies such as the United States and the European Union.

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Second Largest Israeli Bank Leumi Launching Cryptocurrency Trading – Featured Bitcoin News

Israel’s second-largest bank, Leumi, is launching a cryptocurrency trading service to allow customers of its digital investment platform to trade cryptocurrencies. “The service will allow Pepper Invest customers to buy, hold, and sell cryptocurrencies.” Major Israeli Bank Launching Crypto Trading Service Pepper Invest, the digital investment platform of Pepper by Leumi (TASE: LUMI), announced Friday […]

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Israeli Lawmakers Seek to Exclude Foreigners from Crypto Capital Gains Tax

Legislators in Israel conducted a preliminary reading for a new bill that proposes the exemption of foreigners from capital gains taxes or profit made from their cryptocurrency activities.

The bill, which seeks the amendment of Israel’s Income Tax Ordinance, also prescribes cutting the 50% tax on employees’ crypto options by half. The goal in this regard is to extend the tax benefit enjoyed by workers in the traditional high-tech industry to the digital asset industry.

Israeli Eyes Change to Crypto Tax Rules

Dan Illou, a lawmaker in the Likud party, noted in a statement that the bill has the backing of the coalition government led by Netanyahu. The bill also fits into the current administration’s plans to attract foreign investment to Israel, CoinDesk quoted Illou as saying in a statement.

The latest development has arrived as Israel seeks to regulate the emerging digital assets industry. In November, Shira Greenberg, the Chief Economist of the Israeli Ministry of Finance, put forward recommendations to regulate the country’s digital asset market, including creating mechanisms for tax payments on digital asset activities “in order to remove barriers and increase certainty.”

“Regulatory processes are being formulated and determined during this period in various countries in the Western world, and it is recommended that the State of Israel act in accordance with the standards emerging in the developed world,” Greenberg stated in a statement.

Earlier this year, the Israel Securities Authority (ISA) published a proposal seeking to amend the applicability of the Western Asia nation’s securities laws to crypto and digital assets. Recently, the Bank of Israel proposed rules for permitting stablecoin use in the country while managing risks and protecting investors.

Crypto Regulation in Israel

In the last five years, Israel has created three committees to look into various categories of crypto regulation and adoption in the country, Finance Magnates reported. The third committee, which was established in May 2021, sought to assess ISA’s policy with regard to investment products in digital assets.

While Israel continues to work on formulating regulations for its crypto industry, public authorities in the country are actively countering the use of digital currencies for crime. Additionally, Israeli authorities seized millions of dollars in crypto allegedly linked to groups in Iran and Lebanon. In a separate action, it confiscated 189 Binance accounts reportedly linked to Palestinian and Islamist terror groups.

Meanwhile, Israel, like major countries across the world, is also considering the launch of a central bank digital currency (CBDC). However, the country has tied the launch of its CBDC, the digital shekel, to similar moves in other jurisdictions, especially in the United States and the European Union.

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