Bitcoin (BTC) has not finished revealing all its secrets. Satoshi Nakamoto himself, may not have foreseen some of his baby’s current developments. States, for their part, must now position themselves in favor or against cryptocurrencies in general. Bitcoin and its allies still benefit from strong allies.
Bitcoin is a tax haven in Israel
Bitcoin and the altcoins are gaining ground, but we still do not know the true nature of Bitcoin: is it a currency, an asset?
In Israel, 4 members of the Knesset, MK Oded Forer, Yevgeny Soba, Yulia Malinovsky and Alex kushnir, proposed an amendment to the existing tax law so that cryptocurrencies are treated as a currency and therefore not subject to capital gains tax.
The current tax policy indeed imposes a 25% tax when converting tokens into fiat currency; this rate is 15% for short-term lenders.
The proposed amendment explains that the current regulations are not adapted to the existing reality ; cryptocurrencies are presented as a growth engine which allows Israel’s high tech industry to flourish.
If the proposal is adopted, the cryptocurrencies will be taxed at a much lower rate.
Currently, individuals with an income below 75,720 INS – approximately $ 21,000 – are imposed on the 10% height.
Cryptos were invented for COVID-19
MK Drill believes that the government should consider blockchain technology as a solution for digital payments, especially in this context of a pandemic.
The Knesset recently approved new restrictive measures, as nearly 7,000 people tested positive for Covid-19 in Israel within 24 hours.
The specter of a second world containment continues to weigh on the performance of financial markets.
In the event of a second wave confirmed by governments, cryptos will have the opportunity to shine or disappoint, as hedge against another market crash.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Israel’s position will certainly influence the position of the US parliament on cryptocurrencies. The latter are well on their way to winning the political war within the countries of the North. We could soon see a regulatory pandemic in favor of Bitcoin and altcoins. A second wave of COVID-19 would reveal the strengths and weaknesses of fiats, traditional assets and cryptocurrencies.
Litecoin, welcome in the Silver Age