Central District Court in Israel classifies bitcoin as asset

Posted 23 May, 2019

The Central District Court in Israel has decided to side with the Tax Service and determines the interpretation of bitcoin as an asset that is subject to capital gain tax. The decision was made under the case launched under petition lodged by the founder of a blockchain company against the Tax Service.

The story dates back to 2011 when the founder of DAV.Network Noam Copel acquired bitcoins and then sold them in two years with the profit at ILS 8.89 million ($2.29 million).

After that, Noam Copel was involved in the legal dispute with the country's tax authority regarding the status of bitcoin. Specifically, he stated that the coin was foreign currency, while the authority pressed for the status of an asset.

During the court hearing, Judge Shmuel Bornstein noted that bitcoin can disappear or be forced out by other cryptos, which means that it should be considered as a currency in particular for taxation.

Under the court order, Copel has to pay taxes from the bitcoin deals reaching $830,600 along with the court expenses ($8,306).

Nevertheless, it was noted that he still has time to submit an appeal to the Supreme Court.

Besides, it was reported earlier that Chinese law enforcement bodies arrested two traders that run a fraud scheme aimed at OTC traders.

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23 May, 2019 17:00

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