Israel continues to take steps to support cryptocurrencies. In terms of technological innovation, Israeli enterprises have become the pioneers with a capital increase of 5 billion dollars in 2017.. This is nearly 10% of China’s annual fund total. While there are many popular apps, platforms and products such as USB flash drives, Waze navigation app, SodaStream carbonation machines, the country is also entering the cryptocurrency industry.
Support cryptocurrencies from Israel’s jurisdiction!
Israel’s largest bank, Hapoalim, jointly worked with Microsoft in 2017 to create a blockchain-supported platform. In February 2018, the Israel Tax Administration (ITA) considered cryptocurrencies to be “a property, not a currency,” in order to tax cryptocurrencies.
On February 26, 2018, the Israeli Supreme Court temporarily granted Leumi Bank’s Israeli crypto company has made a decision to block the bank accounts of Bits of Gold. However, the court later issued an interim court order to prevent the Israeli crypto company and Bits of Gold, an exchange that facilitates the trading of digital assets, from restricting any transactions. It needs to be accepted.”
Although many cryptocurrency traders consider the interim decision a “precedent”, the Israeli Supreme Court still leaves ample room for further development. Judge Anat Baron, who presided over the case, made a statement regarding the decision:
This court decision is to analyze every transaction that takes place in the bank’s bank account or to take an action to minimize the risks that become transparent through company activities. not intended to harm the rights of the bank. Exchanges that trade in cryptocurrencies and are transparent must first be legally accepted.
Yoval Roash, the founder and CEO of Bits of Gold, states the following regarding the court decision. :
We are the first to propose a law for the use of digital currencies and we are the first supporters of these rules.. From the very beginning, we saw the problem with Bitcoin in terms of its anonymous features and wanted to get a certificate of exchange service and we got it in August 2013. We will continue to be a pioneer in the industry for digital currencies, which provide rapid development for the high-tech and financial industries, to find the right place in the Israeli economy.
Is the Israeli court decision an overall victory for cryptocurrencies?
With this decision, the Israeli Court now wants banks to allow crypto trading and prevent the restriction of bank accounts of companies related to this industry. Although this decision prevents Leumi Bank’s Bits of Gold company from blocking the bank account, banks still oppose this decision and impose restrictions on the accounts of individuals who try to transact through the company.. Therefore, this decision is far from a general victory for the cryptocurrency industry in Israel yet.
It was also later discovered that this order was actually part of a regulation against the online gambling industry.. Because the bank has defined some of the Bitcoin exchanges as gambling sites, thus causing the exchanges to block their payments.
“The court has determined that there is no direct ban on cryptocurrency trading in Israel.”
Judge Baron, after examining the last five years of Bits of Gold’s transactions, incorrectly determined his assumption that violations of the law would occur if Bitcoin was left unchecked. Regarding the ruling, Yair Geva, head of the Hi-Tech Division at Israeli law firm Herzog Fox & Ne’eman, said:
The court has the right to suspend Bank Leumi’s banking services for cryptocurrency trading. It is not yet clear whether he has While the final verdict is still pending, this latest ruling from the Supreme Court indicates that the massive growth of the crypto industry in Israel and investment in hi-tech as well as the financial industry in general will continue. One of the reasons is that the Supreme Court has made it clear that Bits of Gold is transparently traded and does not violate any legal provision.. In other words, the Supreme Court has found that there is currently no direct ban on cryptocurrency trading in Israel. It remains to be seen how the regulators in Israel will react to this landmark decision.
Israel sees supporting cryptocurrencies as an opportunity
Galia Benartzi, co-founder of Bancor, made the following statements on the subject :
Regardless of how regulators respond to this decision, it is clear that progress on blockchain innovations in Israel is not slowing down. As with any new and promising technology, jurisdictions and regulations that support well-balanced policies to foster innovation will accelerate these developments. The regulations will cause entrepreneurs and institutions to understand deeply how these technologies affect all stakeholders.. In addition, these developments will enable the development of policies that will be made in the public interest and accountability. Israel has always viewed the advancement of technology as a strength and an opportunity.. It is therefore well positioned to lead the development and implementation of Blockchain.
Israel among the first countries to adopt Blockchain technology and cryptocurrencies
A blockchain-based travel platform Itay Nagler, CEO of Cool Cousin, made the following statements:
Israelis are upsetting the perception that things will not change. We have always believed there is a better and more efficient way to do things.. This is one of the main reasons why a small country is home to many large innovative companies and individuals. This is also an explanation of why Israelis were among the first countries to adopt Blockchain technology and cryptocurrencies. Many of us see this as a great solution for many problems.. Therefore, we have access to quality human resources and easy financial support. I believe these have helped us position ourselves as pioneers and experts in many industries over the past years.
Israel seems to have settled into the world of Blockchain
Bancor has raised $150 million in just minutes. It was one of the first major ICOs to rise above and carry its origins to Israel. IOTA, an IoT-focused Blockchain solution, recently opened an office in Tel Aviv, demonstrating that it is “a well-established tech hub, ranking in the top 10 in the city’s reports.” Galia Benartzi, co-founder of Bancor, added the following to her statements:
Israel did not prevent entrepreneurs from starting their own Blockchain projects, although there were no concrete regulations from the industry before.
However, these positive changes are against the last decision of the Israeli regulators due to the “trade volatility” of companies that are not included in the crypto industry in the Teleton Exchange indexes for SMEs.. However, Israel continues to take steps to support cryptocurrencies.. With these developments, Israel seems to have settled into the world of Blockchain along with the rest of the world.
Cointelegraph