Israeli government proposes new bill requiring citizens holding more than $61,000 in crypto to submit reports to tax authorities

On July 29, the Israeli government is stepping up its efforts to stop tax evasion and plug loopholes for possible money launderers. A new draft bill published by the Ministry of Finance this week proposes a new statutory requirement that will put cryptocurrency users under stricter scrutiny. The proposed law will force cryptocurrency users who have purchased 200,000 NIS ($61,000) worth of cryptocurrency or currently hold cryptocurrency worth the same or more to submit reports to the Israeli tax authorities. This reporting obligation applies to any Israeli citizen who holds cryptocurrency worth this amount or more, either personally or on behalf of a child under the age of 18, on one or more days during the tax year.

If approved, the introduction of this measure would raise state revenues by an estimated NIS 30 million ($9.2 million) in 2022 through additional taxation.