Fiscal authorities around the world continue to put pressure on cryptocurrency companies to gain access to more transaction information. One of the Israeli crypto exchangers, whose services are used by more than 50,000 people, was forced to provide the tax service with information about large traders on the platform.
Bits of Gold, an exchange based in Tel Aviv, has agreed to provide the tax authority with information about its heaviest users. The company will provide the agency with information about any trader who has traded $50,000 or more in a 12-month period. The company's consent was obtained as a result of "thorough investigations by the authorities on the spot" (in other words, under pressure from the authorities).
Exchangers that operate in Israel are already required to report large traders to the Israel Anti-Money Laundering and Combating Terrorism Financing Agency, but this information does not fall into the tax service, as there are laws protecting the confidential data of citizens and prohibiting this. In addition, according to local publication Calcalist, the Israel Tax Authority does not have the right to force companies to disclose information about their customers without their consent or without a legal request.
The agreement with Bits of Gold is a sign that the Israel Tax Authority plans to expand the list of companies with which such agreements will be concluded. And this is not the first of the Israel Tax Authority's cryptocurrency initiatives.
Back in May, it was reported that local tax department offices were sending letters to people they suspected of trading in Bitcoin, demanding the disclosure of all information about their participation in the cryptocurrency market, including past transaction history and current savings data. People were required to provide a list of all their accounts on all exchanges, as well as report trading earnings. In addition, the agency wants the “suspects” to clarify whether they are engaged in mining.
According to news.bitcoin.com
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