The President of the Israel Securities Authority joins the movement of critics who call bitcoin a # 39; & # 39 ;. bubble
Speaking during a speech on Monday, Professor Shmuel Hauser, President of the Israeli Securities Authority (ISA), became the latest global finance official to try to temper the Frantic interest sparked by bitcoin, the world's first cryptocurrency. The official compared the growing demand for bitcoin – now among retail and institutional investors – to the rush of nineteenth century gold.
In quotes quoted by the Israeli publication Haaretz, the securities regulator stated:
[Bitcoin] looks like a bubble, smells like a bubble, behaves like a bubble and feels like a bubble, which explains the increase from $ 2,000 to $ 11,000 in a few months – and suddenly a drop of 20%. The pursuit after bitcoin reminds me of the rush of 19th century gold.
To further highlight his "bubble" remark, Hauser discussed the growth of the cryptocurrency industry as a whole, from $ 17.7 billion to $ 350 billion today.
The official also sought to differentiate between bitcoin, blockchain technology and initial coin offer (ICO). Blockchain, he said, is a "legitimate technology that will be part of our lives".
Despite his disdainful bitcoin stance, the chief of regulation called on the Israeli authorities to adopt a "friendly" regulatory approach to IFAs, a new and popular form of fund-raising fueled by cryptocurrencies like bitcoin and ethereum.
Moreover, Bitcoin's adopters in Israel are now seeing the capital gains tax on profits after the Israeli Tax Authority considered digital currencies as intangible assets rather than as foreign currency. The capital gains tax rate of Israel starts at 25%.
Announced earlier this year, the Israeli Tax Authority wrote in a statement issued:
[Bitcoin] will be considered "active" in accordance with the Income Tax Ordinance and their sale will be taxed as a sale of "property". The proceeds from their sale will be classified as capital income and capital gains will be taxed at fixed tax rates.
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