Why are Israeli Banks Refusing to Take Fiat Deposits from Cryptocurrency Traders?

On August 6th we reported the difficulty experienced by Israeli cryptocurrency traders to pay taxes given the concerns raised by the banking industry. With over $85 million USD in tax arrears to be paid to the government, cryptocurrency traders are blaming the banks for purposefully creating a barrier due to the competition from the emerging technology.

Will the war between the two come to a resolve? Not anytime soon given the banks sees cryptocurrency as a replacement to the long-standing industry.

‘Government turning a Blind Eye’

One of the Bitcoin traders in the country, Ron Gross, talked to Haaretz, an Israeli publication, blaming the systems in place for constricting cryptocurrency traders from paying their taxes from trading. The traders complain that their funds are locked up in various countries such as Switzerland and have no means to getting into Israel given the banks refusal to accept their deposits.

Despite the government and tax authorities fully aware of the problems facing the traders, they have chosen to do nothing as Ron puts it:

“The tax authority is aware of the problem, but they say the ball isn’t in their court.”

The Israel tax authorities charges the cryptocurrency traders 25% capital gains tax while corporations in the crypto industry pay upwards of 47 percent.

Competition for the Shekel

On July 19, reports from the local dailies announced the Israeli National as part of a larger cryptocurrency scam worth over $1.7 million USD. Such scams and other illegal activities ‘enhanced’ by cryptocurrencies are the main reason as to why banks are not accepting cryptocurrency traders to deposit.

Or Is It The Competition From The Emerging Asset Class?

The emerging virtual currencies are raising doubt among a number of governments across the world. Israel’s shekel is currently in doubt as a long term currency in Pakistan, as the latter aims to replace it with a digital sovereign currency. Israel’s government has also come out strongly calling out for the development of digital currency to replace the national currency.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[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


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today