Other traders and crypto-related businesses in Israel have experienced difficulties making deposits and remaining tax-compliant due to crypto-averse banking policies. According to some reports, cryptocurrency traders cannot pay taxes as they are unable to make deposits of funds obtained through cryptocurrencies.
The tax authority is reportedly aware of the problem, but does not act as, according to local BTC investor Ron Gross: “the ball is not in their court.”
Additionally, a cryptocurrency investor has filed a class action suit against the Israeli Bank Hapoalim, on the grounds that they will not accept money earned via BTC investments. As previously reported by Cointelegraph, the complainant’s lawyer, Lior Lahav, has argued:
“The banks have an obligation under the law to accept money from the clients [...] They can check on their clients, do their due diligence, and find out where the money is coming from. The problem with the banks is that they are doing nothing. They are not asking their clients: ‘Provide me documentation of the origin of the money.'”
