Israeli Cryptocurrency Traders Locked Out of Banking System: Report

After being unable to deposit profits, Israeli cryptocurrency traders are looking for answers from banks and regulators.

Still unfamiliar with the technology, some $86 million in unpaid taxes on cryptocurrency trade earnings have piled up as banks refuse to touch deposits writes Israeli media Haaretz.

“The tax authority is aware of the problem, but they say the ball isn’t in their court. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up,” Gross told the Haaretz.

Gross said he has paid his tax bills to the Israeli Tax Authority consistently since 2011, but after 2017 things went sour with his bank. Israel currently taxes virtual currency profits at a capital gains rate of 25% rate for individuals and 47% for corporations.

The issue is not the tax authorities, however.

Another trader Haaretz spoke with said banks lock up funds due to anti-money laundering and know-your-customer concerns. Paying taxes with…