An Israeli court has said bitcoin is an asset , ruling in favour of tax authorities in a case involving a blockchain start - up which argued cryptocurrencies are currency . DAV argued any profits resulted from exchange rate differences and were therefore untaxable . However , tax authorities successfully argued crypto is an asset subject to capital gains tax of up to 10 % . DAV founder Noam Copel now receives an approximate ILS3 m ( $ 830,000 ) tax bill . The Financial Action Task Force has asked member countries , including Israel , to regulate crypto exchanges as commercial banks , with virtual assets considered property , assets or “ other corresponding assets ” .
An Israeli court has said bitcoin is an asset, ruling in favour of tax authorities in a case involving a blockchain start-up which argued cryptocurrencies are currency. DAV argued any profits resulted from exchange rate differences and were therefore untaxable. However, tax authorities successfully argued crypto is an asset subject to capital gains tax of up to 30%. DAV founder Noam Copel now faces an approximate ILS3m ($830,000) tax bill. The Financial Action Task Force has asked member countries, including Israel, to regulate crypto exchanges as commercial banks, with virtual assets considered property, assets or “other corresponding value”.