Bits of Gold To Share Customer Data With Tax Authority
Bits of Gold, a big name in Israel's digital exchange industry, will work alongside the nation's tax authority and provide requested transaction data on certain clients spanning over 12 months.
The large cryptocurrency in Israel has entered a deal with the government's tax authority to provide information on transactions by clients exceeding the agreed $50K requirement within the last year, as a local report states.
Israel's financial laws mandate that any operating brokerage must report unusual or suspicious deals to the IMPA although the same does not apply to the tax authority as part of the current laws involving customer privacy. The tax authority had previously been denied by courts to obtain a list of clients from a bank that announced bankruptcy due to privacy laws.
Given the agreement on both ends, the authority says the information provided will aid them in spotting money-laundering schemes and other malicious transactions. Bits of Gold's registered database consists of more than 50000 users, making the amount of information shared a significant one.
Only The First
According to the report, the tax authority inspected company records to sift through its clients granted their position, stating that it was not investigating the company but its clientele alone. While the company is the first exchange to make this deal, this poses more concerns towards the authority's interference in other exchanges.
Regulations were introduced in 2017 by the ITA, enforcing asset status on Bitcoin and other tokens while miners and investors are bound to the introduced and fixed tax rates. Investors are required to hand in 25 percent of all digital trade profits and exchanges must enforce a VAT of 17 percent on its customers.
Officials have confirmed and enforced their position on the taxes placed on investors and crypto and have been further focusing on ICO funding as of late.