Israel to Tax Bitcoin

The government of Israel would treat bitcoin and other cryptocurrencies as a kind of property for tax purposes
19 February 2018   812

On February 19, Israel's government released the notice which confirms that Tax Authority will regard cryptocurrencies as "a property, not a currency" in order to make it taxable. It is important to note that the Tax Authority detailed its position first in January of this year.

According to the circular, profits from cryptocurrencies will be subject to capital gains tax at rates between 20-25%, while miners or traders must pay 17% VAT in addition to capital gains tax.

The government of Israel started exploring the taxation of cryptocurrencies as early as 2013.

Today’s announcement was largely expected because of previous draft release.  In January, Tax Authority announced another draft circular, which outlined potential ways in which the government could tax ICOs.

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   195

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.