Over 2000 (yes, 2000!) types of digital currencies exist today. The value of 50 of them (each) exceeds USD 100 million. Bitcoin’s value alone currently stands at over USD 153 billion.
In thousands of stores worldwide, you can make purchases using digital currency. Among these stores are Microsoft, Expedia, and KFC Canada. Even in Israel, quite a few stores allow digital currency use. In the state of Ohio, you can even pay your taxes using Bitcoin.
Just recently, the Wall Street Journal published a study showing that 10% of the world’s central banks have expressed their willingness to issue their own digital currencies within three years (and another 10% in the three years after that), with pilot programs already running in Sweden and Uruguay.
Despite technological advancement, regulation in general, and in the tax field in particular, has not been particularly clear or even present. In recent months, as Israel’s tax authorities and courts have begun to take on digital currency cases, rules have started to emerge governing the subject.
If you are developing, mining, or using digital currencies, you should watch our video for some clarifications on the topic.
Source: barlaw.co.il