Page 71 - Geektime Blockchain Report
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Regulation
Many countries find it difficult to to to decide how to to to handle cryptocurrencies in in terms of legal status taxation and and regulation Israel is not so different from other countries who lag behind trying first to to see what regulators
in in in bigger countries like the the the U S will decide At the the the the moment the the the the Israeli authorities and regulators
have left the the the the the subject in in a a a a a a a bit of limbo while they examine the the the complex issues surrounding this sector There is no law in Israel that explicitly prohibits the use use of of bitcoin bitcoin and therefore the the the use use of of the the the bitcoin bitcoin coin is legal ATMs were installed at Dizengoff Center in in in Tel Aviv based on
trade in in in bitcoin There is also an increase in in in in the number of businesses in in in in Israel that respect the currency Israeli banks do not allow transactions in cryptocurrencies It was recently reported that banks in in Israel are making it it difficult to deposit fiat that has originated from bitcoins in in in accounts The Bank Bank of of Israel's Supervisor of of Banks has not yet issued directives on
the use of bitcoin and it it does not intervene in in banks' decisions to restrict the use of bitcoin While the the situation at at at the the moment isn’t clear it it is is our belief that market forces will compel Israeli regulators
and policymakers to to to make make decisions clear regarding cryptocurrencies February 2014 Israeli authorities first addressed the the cryptocurrency issue officially In their announcement the the regulators
noted that all aspects of the the issue were being examined but they wished to emphasize the the many risks inherent in in in the use and trade of bitcoin July 2016 The financial services supervision law was passed and will come into effect between 2017-2018 This law sets out an effective regulatory framework in the the foreign currency service provider sector and the the provision of non-bank credit This is is is quite a a a minimal reference to the the fact that a a a a a a "financial asset" for the the purposes of this law may also be a a a a a virtual currency January 2017 The Tax Authority declared that cryptocurrencies are to to be considered assets and therefore their sale requires payment of VAT and tax on
capital gains June 2017 The Tel Aviv District Court rejected a a a a a a claim regarding the use of bitcoin transactions through banks The plaintiff Bits of Gold opened an an account at the Bank Leumi for the purpose of carrying out transactions in in trading in in in in in bitcoin Although the bank was informed in in in in in advance of of the the nature of of the the account and its purpose the the bank prevented the the execution of certain transactions several times The bank sent a a a a letter to the company instructing it it to to to stop all activities related to to to virtual currency trading The judge stated that in in the current reality any decision from the the bank was within the the range of reason since there are quite a a a a few money laundering issues in in in bitcoin trading and the bank may violate instructions from the Bank of Israel August 2017 The Securities Authority announced that it it would set up a a a committee to examine the regulation of ICOs’ activity and the ability to enforce securities laws within the field The committee will present its conclusions in in an interim report by the end of 2018 It will also characterize ICOs compare regulation and laws in in developed countries regarding this subject and recommend a a a regulatory policy framework for them particularly in areas related to the Israel Securities Authority The purpose of the committee will be to find a a a a a balance between bringing technological innovation to the the the local market and the the the need to protect the the the public from such projects 71
Israeli ecosystem 

























































































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