Despite the growth potential of Israeli companies in the field of Crypto Currency, the regulatory legislation in Israel is not adapted to the digital currency industry, thus preventing the development of the market in Israel. A new Knesset initiative is looking to change that.
In order to present value to foreign investors, a new bill submitted by MK Dan Illouz of the Likud seeks to compare the conditions of the companies dealing in crypto with those of regular companies, and this is in order to prevent a spillover of investors to companies abroad. It is therefore being proposed by the Likud member that the sale of digital currencies by a company resident in Israel be exempt from the tax currently provided for capital gains.
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ā ×× ××××× - Dan Illouz (@dillouz) June 28, 2023
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It is also proposed to add an amendment to the Income Tax Ordinance according to which a tax benefit will also be granted for the allocation of digital currencies to employees similar to the procedure used for granting options. The bill is expected to go to the ministerial committee for legislation this coming Sunday.
MK Dan Illouz said as part of his upcoming vote on the Crypto legislation: "Precisely now that the whole world is in crisis in the high-tech field due to inflation, it is important that Israel leads in groundbreaking technologies, as it has done in the cyber field in the past. Israeli entrepreneurship is strong and excellent, comparing the conditions of crypto companies to other high-tech companies is critical so that Israeli companies continue to operate from the country and for the State of Israel to enjoy the fruits of Israeli entrepreneurship. I believe in Israeli entrepreneurship through which we can create a financial ecosystem in Israel that will compete with New York and London if we only know how to adjust the regulatory situation. This action will open up the market, create viability for investors and allow the State of Israel to move towards a new digital age."
Israel Blockchain regulation š#crypto #Web3 #blockchain https://t.co/CLOuxQftUU
ā 8081 Fintech Digital Assets 8ā£š± (@8081Inc) June 9, 2023
The news of new regulation around Crypto markets comes after the company Tectona, led by Chairman Yariv Gilat and CEO Yossi Barnea, plan on investing and purchasing 32% of the shares of the crypto trading platform Bit2C owned by Eli Bejarno and Hedar Makdessi. Bit2C is the only crypto trading platform in Israel that holds a Capital Market Authority license for crypto trading in Israel. The transaction of Tectona and Bit2C will realize the potential to lead the crypto industry in Israel as a brand.
