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Cryptocurrencies gets its new supporter, Israel to encourage cryptocurrencies

Mar 21, 2018 Posted /  1814 Views

Cryptocurrencies gets its new supporter, Israel to encourage cryptocurrencies

Israel: The country of startups

When we talk about the technological progress, Israel has been tagged as The Startup Nation with Israeli business enterprises acquiring over $5 billion in funds in 2017. While there are numerous well-liked platforms, applications, as well as products the country has put its base in the cryptocurrency business too. Hapoalim which is Israel’s major bank collaborated with Microsoft in 2017; to make a Blockchain-based platform to “build the procedure of signing up guarantors easy and more rapidly.” The Israeli Tax Authority in February 2018 declared that cryptocurrencies will be taxed by the capital gains as assets. The country took it even further, on February 26, 2018, when the Israeli Supreme Court gave a verdict that would provisionally block Leumi Bank, restraining a local broker, Bits of Gold, from facilitating the transaction of cryptocurrency. Although a lot of was swift to praise the provisional verdict as ‘precedent-setting,’ it still leaves plentiful scope for additional growth. Anat Baron, the judge giving the verdict of the case, said that her judgment was “not planned to damage the bank’s rights to investigate with specificity each transaction that takes place through the bank account or to take any actions that are linked to minimizing risks.” The CEO of Bits of Gold Yuval Roash sees this verdict as reasonable, stated:

“Regulation is one of the things that have been significant to us since the commencement. From the very beginning, we saw the difficulty with Bitcoin in terms of its anonymous characteristics, and we wanted to get a currency service certificate and we received it in August 2013.” This is an important development from December of last year when a Tel Aviv district court ruled support of Leumi Bank, who had declined service to Bits of Gold for the reason that of Bitcoin’s incapability to meet anti-money laundering standards.

No direct legal prohibition on cryptocurrency trading

After investigating the last five years of Bits of Golds’ process, the Judge determined Leumi’s preceding postulations that infringement of the law would happen if Bitcoin were left unrestrained were fake.

Regarding the decision, head of the Hi-Tech Department of Israeli law firm Herzog, Fox & Ne’eman, Yair Geva, said :

“It should be emphasized that the Court did not rule on the fundamental question—which has not yet been decided—whether Bank Leumi is entitled to refuse banking services for cryptocurrency trading. Although the final decision is still pending, it seems that this recent verdict of the Supreme Court will continue to give tailwinds to the tremendous growth of the crypto industry in Israel particularly, and to hi-tech as well as the financial industry in general. One of the reasons for this is that the Supreme Court clarified that Bits of Gold operated transparently and did not violate any statutory provision. In other words, the Supreme Court determined that currently there is no direct legal prohibition on cryptocurrency trading in Israel. It remains to be seen how regulators in Israel will respond to this landmark decision.” In spite of how regulators will react, it’s previously obvious that development on Israeli blockchain improvement hasn’t slowed.

Galia Benartzi, Co-founder of Bancor said that

“As with any new and promising technology, jurisdictions that instate well-balanced policies to promote innovation and adoption will find themselves attracting talent and business to their ecosystems on grand scales. The best frameworks will be the ones that take a learning approach, allowing entrepreneurs and institutions to deeply understand how these technologies affect all stakeholders and develop the policies which are beneficial to most while educating the public on tradeoffs and accountability. Israel has always seen the advancement of technology as a strength and opportunity, and is well positioned to lead in Blockchain development and applications,”  

Putting its foot in the Blockchain world

Israeli citizen plus CEO of blockchain-driven travel startup Cool Cousin, Itay Nagler, says that Israelis weaken the insight that things shouldn't vary.

“We are almost raised to believe that there is always a better, more efficient way to do things. That is one of the main reasons such a small country is home to many great innovative companies and individuals. This is also an explanation of why Israelis were among the firsts to adopt blockchain technology and crypto. A lot of us see it as a wonderful solution to many problems and our mentality of "no fear" to change, and relatively easy access to quality human resources and funding allows us to act on it. This, I believe, helped us during the past decades to position ourselves as pioneers and experts in many industries." Although there were no real regulations of the industry prior to this, it didn’t prevent entrepreneurs from beginning blockchain projects of their own. Israel emerges to be setting itself in the Blockchain system, together with the rest of the world but tries the first promise that the market’s doubtful areas be restricted while its most helpful characteristics allowed to grow.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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