The Israeli Parliament has passed the first reading of a bill that would fully exempt fees from taxes for foreign owners of digital assets.
The proposed law would reduce taxes on the sale of crypto options for employees of affiliated companies from 50% to 25%, and would also differentiate between the terms “digital currency” and “security.”
According to MP Dan Illouz, the law is intended to even out the disproportionate taxation present in the blockchain sector and eliminate tax discrimination against foreign investors.
Additionally, Prime Minister Benjamin Netanyahu’s coalition government has shown its support for the proposal.
Recent developments in Israel’s cryptocurrency industry include the Bank of Israel publishing recommendations for issuers of “stablecoins,” such as implementing a ban on algorithmic stablecoins if they are used in payments.
In the past, 189 accounts on Binance were confiscated in December 2021, and the government seized millions of dollars in digital assets related to terrorist groups in June 2023.
