News reports have emerged that solidify arrest rumors surrounding Celsius Network CFO Yarom Shalem in Tel Aviv, allegedly in relation to investor fraud worth tens of millions of U.S. dollars.
Israel will extend the anti-money laundering and combating the financing of terrorism rules to digital currencies to deter crime and give the industry legal recognition, the country’s AML chief says.
Beitar Jerusalem football club owner was among those arrested over allegedly defrauding millions of shekels from investors, but he has denied the charges.
The bill is seeking to increase the amount of tax the Israeli government collects from the industry, but several leaders in the space are already up in arms against it.
Andrew Abir said the bank had begun piloting the digital currency, though was keen to downplay suggestions that a wider launch was imminent.
Sirin Labs, Stox and Leadcoin raised over $250 million in their respective token sales, but according to the employees, the operators directed the funds to their own personal expenses.
The Bank of Israel is reported to be working alongside other central banks to prepare for an eventual launch, though has yet to commit to formally introducing a digital shekel.
The Tax Authority has been reportedly sending inquiries to local and global exchanges, pressuring them to divulge information about Israeli digital currency owners.
The attack was carried out by a sophisticated team of hackers that may have been state-sponsored, according to local media reports.
Under the existing Israeli laws, digital currencies are considered assets and therefore, their sale or conversion attracts a 25% capital gains tax.
The Tel Aviv Stock Exchange plans to launch the Central Blockchain Securities Lending Platform on November 2, 2020.
The attorney general of Israel has said that the country’s banks cannot institute a blanket ban on serving cryptocurrency companies.
