Israel could follow in the UK’s footsteps as Israel’s parliament – the Knesset – could soon exempt foreigners from paying taxes on income from crypto asset sales. The decision is an attempt to make the country profitable in terms of maintaining the cryptocurrency ecosystem. With this, Israel wants to position itself as a pro-crypto nation in order to attract investors to participate in its economy. It is also worth noting that despite its notorious volatile element, the crypto sector hit the market cap of over $3 trillion (approximately 2,47,38,300 crore) in November 2021.
A bill providing for this provision was introduced to the Israeli Parliament by Knesset members Dan Ilouz, Ariel Kellner, Simcha Rothman, etc official document shows.
The country’s authorities have recognized that the crypto sector is booming in other markets with full potential and that it is time for Israel to jump on the Web3 wagon as well.
“Israel fully supports cryptocurrencies. Much like Rishi Sunak in the UK and lawmakers across Europe, Finance Minister Bezalel Smotrich has strengthened the local sector and issued a clear call to global investors and companies: “Israel invites you to do business on our shores,” the statement read mentioned in the draft law.
At the start of 2023, the UK enacted a rule exempting non-residents using local UK crypto exchanges for purchases from tax cryptocurrencies, from paying taxes. Sunak first announced this rule in December last year, setting January 1, 2023 as the effective date for the law.
The UK also viewed this decision as a step forward in building a fertile crypto ecosystem in which to thrive and grow.
The Israeli Ministry of Finance is currently assessing the threats and challenges associated with the volatile industry to develop appropriate rules to protect Israel’s crypto community. Among other things, the government there wants to tax the cryptocurrencies held by its citizens abroad.
The country is also expected to set up a committee dedicated to regulating the formation and operation of decentralized autonomous organizations (DAOs) built on blockchains rather than servers, to make them “more free, transparent and independent.” .
Crypto exchange Gemini reported had predicted last year that 28 percent of the Israeli population owns crypto assets.
Back in October, the Tel Aviv Stock Exchange (TASE) announced that it was looking into setting up a blockchain-based trading platform for digital assets.
