2024-01-26 13:00:59
Guy Sarosi, Shaoli Rajwan, Nir Hirshman, Naa Mashiach, Haim Venatia, Ben Samuha, Yuval Roash (photo by Maxim Dinstein, Yael Tzur, Itamar Arieli, shutterstock) Despite instability in the past year, digital currencies continue to stimulate significant discourse throughout the world, when even in Israel buds of changes have begun in recent times.
“We are working with the regulator to make it easier for the public”
Naa Mashiach, CEO of the Bitcoin Association:
“For digital currency users, the Israeli Bitcoin Association has gathered on its website hundreds of businesses and service providers that accept payment in Bitcoin and other digital currencies. We know to estimate that there are many more Israeli businesses interested in receiving payment in digital currencies.
Apparently, it is a simple process and there is no need for complex evaluations, a business just needs to open a bitcoin wallet and receive payment. But the significant obstacle is in front of the consumer public when every small or large purchase is considered a “tax event”. That is, if you purchased falafel with bitcoin, you will have to report the operation to the income tax and also calculate the profit/loss on the bitcoin from the moment I bought it until it was redeemed by buying the falafel portion.
We are working with the regulator to make it easier for the public, and our proposal is to recognize Bitcoin as a currency so that, similar to foreign currency, whoever converts it will be exempt from taxation on the exchange rate differences. We also put forward a proposal for an exemption from reporting small amounts, where it is clear that bitcoin is used as a means of payment for buying services and goods and not for speculative trading.”
Naa Moshiach. Photography: Yael Tzur
“Slowly we will see widespread and everyday use of crypto-currencies”
Attorney Guy Serosi, Chairman (joint) of the Cryptocurrency and Digital Assets Committee at the Bar Association:
“The crypto industry is developing and becoming established. In my role as a lawyer and compliance officer who accompanies businesses that want to use receiving payment in cryptocurrency, I definitely see a trend recently. At the same time, these are mainly businesses that carry out transactions in large sums – art galleries, as a recent leader, and service providers such as lawyers and accountants.
The economy itself is still developing and maturing in relation to cryptocurrency purchases. I am hopeful that we will slowly see widespread and everyday use of cryptocurrency in other businesses.”
Attorney Guy Sarosi. Photo: Maxim Dinstein
“The biggest breakthrough in Israel in the field of crypto purchases will be with the launch of a stable digital currency linked to the shekel”
Nir Hirschman, CEO of the Crypto Blockchain and Web 3 Forum:
“Already 8 years ago, the option to receive payments in Bitcoin was implemented in most of the cash registers of businesses in Israel, but this function disappeared over the years due to lack of use. The reason is the rapid fluctuations in the exchange rate, which lead to an increase in the amount of people paying when the rate rises, and decreases when it falls.
More in-
Every cycle we see retail companies that allow payment in crypto, but then it disappears. The biggest breakthrough in Israel in the field of crypto purchases will be with the launch of a stable digital currency tied to the shekel. Such a currency will not only solve the challenges of volatility, but will also enable operations with very low fees and encourage businesses and consumers to use crypto as a cheap and efficient payment system that may even replace traditional payment systems.”
Nir Hirshman. Photography: Yael Tzur
“Lack of awareness and technological barriers still prevent businesses from accepting crypto payments”
Yuval Roash, CEO and founder of Bits of Gold:
“The world has already realized that the field of digital currencies is not a passing trend, the technology itself is developing and already has uses in everyday life in Israel and around the world. For example, our new collaboration with the Kalmobil Group, which allows buying cars with Bitcoin and Ethereum.
In order to allow a wider use of crypto payments in Israel, several challenges need to be addressed: lack of awareness and technological barriers still prevent businesses from accepting crypto payments and a clearer set of regulations on the matter could promote payments using digital currencies.”
“The banking system in Israel, to say the least, does not like the adoption of digital currencies”
Ben Samuha, founder of CryptoJungle and the ‘Crypto Speaking’ community:
“Businesses, in my view, are not prepared to receive payment in crypto. The reasons for this involve a variety of problems that exist in the local industry, the main ones being:
1. Banks – the banking system in Israel, to say the least, does not like the adoption of digital currencies – not as an investment, and even more so not as a means of payment. The demand on the part of the banks is for proof of the money routes, legal opinions, and other other requests, most of which are behind them is an attitude that holds that anyone who touches crypto is a criminal, and the duty of proving innocence rests on him. The result of this is that the banks’ expectation, in order to receive the money, will be that as a business owner I will have to do a complete identification not only of the client, but also of the source of his money.
2. Taxes – Crypto is recognized as an asset for tax purposes, so there are tax consequences starting from the method of reporting, through capital gains tax liability if the business owner chooses not to realize, and of course the difficulty of paying the taxes themselves if there is no bridge through the banking system.
In light of these two problems (and there are other problems, including standard Point of Sale interfaces that are connected to the tax authorities’ systems, but they are the main ones), businesses are expected to start accepting payment in crypto, simply doing so without declaring it, or receiving the crypto payment and maintaining it long-term while absorbing the damage The flow (that is, paying the tax using shekels that are liquid in the bank and not after the crypto has been liquidated in the bank)”.
Ben Samuha. Photography: Itamar Arieli
“We estimate that this trend will continue to grow”
Chaim Venetia, CEO and founder of Proxibit:
“We are witnessing a growing interest in crypto, which also includes a change in perception and a growing interest in crypto as a means of everyday payment. Both from business owners and from the customer public. Businesses that have not prepared in advance may face the volatility of currencies and difficulties in converting to shekels, which can affect the operation of the daily business .
In contrast, businesses that have organized themselves regulatory and operationally with licensed financial service providers are able to accept crypto as a means of payment already today. We estimate that this trend will continue to grow.”
Haim Venice. Photography: Yael Tzur
“In order for businesses and companies to be able to receive payments in digital currencies in a convenient and efficient way like cash, there is another way to go”
Shaoli Rajwan, managing partner of the Masterkey venture capital fund:
“It is true that Bitcoin is the first asset in the world to come with its own registration system, but in order for businesses and companies to be able to receive payments in digital currencies in a convenient and efficient way like cash, there is another way to go. Payments is a very complex issue from a regulatory point of view – in order to adapt the existing systems, technological innovation is required And regulatory, this is the stage we are in in Israel.
There are already countries in the world that have managed to bridge the gaps and have even recognized Bitcoin as an official means of payment, so that the mere use of crypto-currencies does not entail a tax event or other regulatory process.”
Shaoli Rajwan, photo: Yael Tzur
#Crypto #executives #analyze #businesses #Israel #prepared #purchases #digital #currencies