Tax agencies around the world continue to exert pressure on crypto-cash companies to make their transactions transparent to regulators. The last example of such behavior was shown by the Israeli tax service, which persuaded the local exchange with more than 50,000 customers to report on transactions of large traders to the regulator. This writes Bitcoin.com.
The Bits of Gold cryptocurrency exchange, based in Tel Aviv, agreed to report its large customers to the Israeli Tax Administration. The company will transfer information to the tax authority about any trader who has made transactions for more than $ 50,000 over the past 12 months. The site agreed to this after the authorities conducted an inspection at the company's offices to collect information about the largest customers of the exchange.
Crypto-currency exchanges operating in the country should already report large transactions to the Office for Combating Money Laundering and the Financing of Terrorism of Israel. However, this information does not automatically fall into the tax authority, as there are laws that prohibit such data transmission in order to protect the personal information of citizens. Moreover, the Israeli tax authority has no legal right to force companies to report their clients without their consent and the judicial precedents supporting this action.
In addition, according to reports, this agreement with Bits of Gold is a sign that the Israeli tax authority plans to appeal to more local companies and exchanges in an attempt to reach similar agreements. And this is only the latest initiative of the Israeli authorities in the crypto industry.
Since June 1, AML rules for crypto-currency have come into force in Israel. Under the law, operators providing access to digital currencies must comply with the AML / KYC standards, report suspicious crypto-currency transactions of their customers, and keep at least five years of documentation - addresses of digital wallet, IP-addresses and the number of each specific crypto currency.