Israeli Bitcoin Investors Are Not Able To Pay Their Taxes Due to Banks Not Accepting Crypto Deposits

The lack of regulation around the crypto world creates some very curious loopholes. One of them can be seen right now in Israel as investors are currently unable to pay their own taxes because the banks are not accepting deposits with money that was somehow obtained using cryptos.

Local investors are willing to pay their taxes, but BTC is not officially recognized in the country and several banks are reported to “freeze” as soon as they hear about Bitcoin.

According to Ron Gross, a local investor, he gathered data about his earnings from Bitcoin ever since 2011 and no bank wants his money. It’s a pretty funny situation.

Tax Authorities Already Know About the Issue

Obviously, this is not slightly good for taxes authorities and even worse for the taxpayers. Gross has been warned by the bank that he has not paid the money he owes them, but it seems that “nothing can be done”.

According to local media outlets, people are owing over $85 million USD to the government in crypto taxes but these problems in the law are getting in the way of people paying. Several banks have rules against accepting crypto money and the lack of coordination between banks and government is striking.

At the moment, there is no proper answer to this situation. Some people sued the banks and are being able to move forward this way, but while a broader decision is not taken, the problem will persist.

It will probably not be for too long, though. The government is losing its money while the problem is not solved, so they are the ones with more interest in this matter.

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Nirmala Velupillai
Nirmala Velupillai
Nirmala is a blogger who has been fascinated by the world of technology and its contributions to societal development. While a novice, her eager to learn about the crypto world has led her to write a number of pieces on its positive and negative aspects. On her spare time, she indulges in understanding and building statistical models and enhancing her painting skills.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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