Article written by: Avi Mizrahi
Tel Aviv based cryptocurrency exchange Bits of Gold has agreed to report on its ‘heavy’ users to the Israel Tax Authority, according to media reports from the country. The company will pass on information to the tax authority on anyone who traders a total of $50,000 or more over a twelve-month period. It agreed to this after the authority carried out an onsite inspection of its operations at the exchange’s offices, targeting information on its bigger clients.
Exchanges operating in the country already have to report big trades to the Israel Money Laundering and Terror Financing Prohibition Authority, but that information doesn’t get to the tax authority easily as there are laws in place to prevent this to protect citizens’ privacy. Moreover, the Israel Tax Authority does not have the legal right to compel companies to report on their clients without their agreement and court precedents back this up, according to local newspaper Calcalist.
Read the whole article here: https://news.bitcoin.com/israel-tax-authority-convinces-local-exchange-to-report-big-traders/
Should crypto exchanges agree to report on their clients if they are not compelled by law?