Crypto traders had issues storing their funds in banks in Israel. A domestic news outlet, Haaretz, stated that cryptocurrency users had around USD 86 million in unpaid taxes because banks in the countries refused to approve deposits.
According to Haaretz, the concern of banks is that crypto users are utilizing the digital assets for unlawful activities. As a result, cryptocurrency investors do not have any ways to transfer their crypto funds to Israel in traditional currencies.
The Israel Tax Authority was informed about the situation, yet they also stated that the main issue was bank policy. The authority believes crypto coins to be assets. Hence, the individual owner should pay 25 percent and a corporation should pay 47 percent.
The Financial regulatory body of the country stated that banks will not get involved with crypto assets five years ago. They also alerted the banks as well as the public about the fact that illegal activities like money-laundering and terrorist funding in cryptocurrencies are growing.
A crypto trader that spoke to Haaretz stated after dealing with several issues with Israel Discount Bank, he filed a lawsuit against the bank. The trader’s request was refused and he was not able to transfer his funds to another account.
The Israel Discount Bank has a policy that does not allow any activity correlated to cryptocurrency.