Israeli banks refuse to accept deposits from crypto investors

Israeli banks refuse to accept deposits from crypto investors

Israeli Banks Should Not Deny Services to Crypto Firms Attorney General

Israeli banks refuse cryptocurrency investors to place funds received as a result of transactions with digital assets on their accounts.

According to Haaretz, local crypto investors are unable to pay the tax as financial institutions fear that proceeds from virtual currencies are linked to money laundering and other illegal activities.

In Israel, cryptocurrencies have no legal status, therefore, income from operations with them is subject to capital gains tax of 25% for individuals and a corporate tax of 47% for legal entities..

The combination of these two factors leads to the fact that investors are not able to pay the state the required amount, since in fact they cannot withdraw shekels from the platforms due to the banks’ refusal to accept deposits..

The Israeli Tax Service is aware of the current situation, but is obliged for non-payment of debt arrest property. Although  some are filing a lawsuit against their bank to get a deferral until a decision is made on it.

Alternative options for withdrawing a deposit involve participation in illegal schemes or transferring funds through investment firms with high fees.

Recall that UK financial regulator recently announced that it will not control bitcoins and ether.

text: Ivan Malichenko, photo: Shutterstock

Israeli banks refuse to accept deposits from crypto investors