Bitcoin [BTC]: Israel classifies the world’s largest cryptocurrency as an asset, and not as a currency
The acceptance and adoption of Bitcoin [BTC] as a mainstream form of payment has been the main focus of a lot of proponents in the space, with some parts of the world leaning positively, while others still considering the largest cryptocurrency as a speculative asset.
The latest country to comment on Bitcoin was Israel, with the country’s highest court ruling that the cryptocurrency was an asset, and not a cryptocurrency. This ruling comes in the wake of Israel’s central bank voicing the same decision about the king coin. Judge Shmuel Bornstein stated,
“The Central District Court in Lod accepted the tax authority’s interpretation, and held that bitcoin is an asset and not a currency, and that the transaction in question is therefore taxable.”
The clincher in the decision was the fact that Bitcoin would be taxable, making it fall directly under the norms of the country’s financial authorities. The status of the world’s largest cryptocurrency is still circumspect in the Reuven Rivlin-led country, but the latest ruling on Bitcoin makes it clear that Bitcoin may never come under the ‘currency’ bracket.
Many cryptocurrency enthusiasts in the country have also opined on the court’s decision, with Itay Bracha, Managing Partner at Israeli law firm, Bracho and Co stating,
“The ruling is a signal to all those who have yet to report cryptocurrency-related profits or based their actions on differing legal advice … The ruling is unequivocal, and since it is not new legalization but a judicial interpretation, it applies retroactively.”
Israel has been on the path to ensure that all cryptocurrency trading is above board and since December 2018, the country has been keeping a sharp eye on any nefarious activities involving digital assets. Persons suspected of shady dealings in the cryptosphere are being sent strict notices to disclose all transactional information, according to reports.