Bits of Gold Secures Israel’s First Operational Crypto License: A Game Changer

The License Achievement: A Milestone for Bits of Gold

In a groundbreaking move, Bits of Gold has become the first cryptocurrency exchange in Israel to receive a license from the Capital Markets Authority. This achievement could be seen as a shiny gold star (pun intended) on the company’s report card. The license means that Bits of Gold will not only be able to safely store digital currencies in their newly developed ‘Bits of Gold Wallet’ but will also enable collaborations with banks and financial institutions, paving the way for broader adoption of crypto services.

The Public’s Access to Cryptocurrencies: Simplified and Secured

Bits of Gold shared in a statement that this new license is a step towards their goal of making digital currencies accessible to the Israeli populace—in a manner that screams ‘simple’ and ‘secure.’ It’s as if they’ve decided to turn the intimidating world of crypto into a friendly neighborhood party. Imagine being able to interact with digital currencies without needing a PhD in Blockchain Technology!

Israel’s Cash Conundrum: A Shift to Digital Payments

It’s important to shed light on Israel’s ongoing war against cash payments. The government has been tightening the screws, all in the name of cracking down on illegal activities and promoting digital transactions. However, this shift hasn’t been smooth sailing, especially with financial institutions historically giving crypto the cold shoulder.

The Banking Tango: Steps Forward and Backward

Even with the Supreme Court ruling in favor of Bits of Gold against Bank Leumi back in 2019, the journey for cryptocurrencies in Israel has been more of a waltz than a straightforward march. Initially, in 2017, Bank Leumi had vehemently refused to offer services to Bits of Gold, citing concerns about Anti-Money Laundering (AML). Fast forward to today, and thanks to the implementation of stringent new AML regulations, the relationship between banks and crypto firms is slowly thawing.

Taxation Woes: The Price of Digital Freedom

If you think getting a crypto license is tough, wait until you hear about crypto taxation in Israel. With capital gains taxes soaring to 33% and income taxes reaching an eye-watering 50% for business-related activities, local investors are getting hit hard in the wallet. Coincub’s report brought to light that Israel ranks as the third worst country for crypto taxation. This makes many enthusiasts reconsider their plans, as taxes seem to hover like a dark cloud over potential profits.

Looking Ahead: A New Era for Cryptocurrency in Israel

Bits of Gold isn’t just the first active broker to receive a license; it’s also a harbinger of hope for the cryptocurrency scene in Israel. With the landscape evolving and regulations becoming more favorable, one can only wonder if other exchanges will soon sign partnerships with traditional banks. Consequently, it could lead to a future where digital assets are as commonplace as your favorite morning coffee.