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Israel Forces Cryptocurrency Exchanges To Reveal Big Traders’ Identity

It is a fact that tax agencies spread across the world continue to apply pressure on crypto companies and bitcoin to make their operations transparent for the authorities. The latest addition to the list is a local cryptocurrency exchange in Israel. This exchange has a client database of around 50,000 clients. The national tax authority has convinced this local exchange to report its bigger traders.

According to reports coming in from Israel, Tel Aviv based cryptocurrency exchange, Bits of Gold, has finally agreed to share its big traders to the Israel Tax Authority. The company has agreed to pass on information to the authorities whenever a trader trades $50,000 or more over 12 months. It had to give its consent since the tax authorities conducted an onsite inspection of its operations and dug for information pertaining to its big clients.

The country already has a provision wherein exchanges must report big trades to the Israel Money Laundering and Terror Financing Prohibition Authority. However, this information does not reach the tax authorities most of the time, as there are laws pertaining to a citizen’s privacy. Apart from this, the Israel Tax Authority does not possess the right to compel any company to share a report on its clients without court precedents and agreement.

As stated in Bitcoin News, post this agreement with Bits of Gold, the Israeli tax authorities now plan to approach other local crypto exchanges and companies to reach a similar agreement. During May regional branches have sent out letters to those companies whom they suspected of trading in bitcoin. The authorities demanded that the recipients of the letter must share all about their dealings in the cryptocurrency market such as current holdings and all past transaction history. Firms were also asked to list all wallets and exchange accounts that they possess and furnish their trade earnings. Apart from this, the authorities pressurized them to reveal if they are engaged in mining in any manner.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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