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    November 23, 2017

    Israel’s new working team may soon impose new Bitcoin regulations

    Israel ministry of finance cryptocurrencies

    Israel’s Ministry of Finance has announced the formation of a new task team to define new regulations for digital currencies.

    As nations around the world declare their stance on burgeoning digital currencies, Israel’s Ministry of Finance has now announced its intention to form a task team to formulate its position on the use of cryptocurrencies such as Bitcoin within its borders.

    The meeting, initiated by finance Minister Moshe Kahlon, aims to assemble a think tank comprised of heads of accounting firms as well as figureheads from relevant professional chambers.

    Read: President Vladimir Putin confirms Russia will regulate ICOs, cryptocurrency mining by July 2018

    Israeli entrepreneur Moshe Kahlon, in conversation with news.Bitcoin.com, offered that “We are leading this with the minister and very happy to see he is all for it… The committees will begin their operations very fast. In my opinion, we will see results on the ground in up to six months.”

    Israel presently does not impose any regulation toward the use of digital currencies – however, the Israeli Tax Authority determined this year that sales of Bitcoin would be subjected to a number of taxes should it not be legally defined as a currency.

    Further, a Tel Aviv court ruled this year that banks can deny service to Bitcoin-related ventures on the basis that banks would not be able to verify their own KYC (Know Your Customer) and AML (Anti-Money Laundering) obligations as laid out in legislature.

    Professor Shmuel Hauser – Head of the Israel Securities Authority – recently offered that Israeli regulators should take a ‘paternalistic’ stance towards cryptocurrencies and ICOs – quipping in a recent forum discussion that the Israeli Securities Authority’s “…task is to get ready now in a proactive fashion before an event will occur that will hurt Israeli investors.”

    The newly formed task team will likely issue clarity to Israeli investors at some point during the course of 2018.

    Read: Taiwan offers its support for ICOs, cryptocurrencies, and the Blockchain

    What are your thoughts? Be sure to let us know your opinion in the comments below!

    Follow Bryan Smith on Twitter: @bryansmithSA

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