The local media Globes reports that the Central District Court in Lod accepted the Tax Authority’s interpretation of bitcoin (BTC) as an asset, not a currency.
According to Globes, Judge Shmuel Bornstein expressed an opinion which described the possibility that BTC "will cease to exist and will be replaced by another virtual currency." The court has reportedly accepted the argument that the definition of "currency" must fit some physical-concrete, not a digital-abstract manifestation.
The former Deputy Head of the Israel Tax Authority and a specialist in crypto taxation, Gidi Bar Zakay CPA said that Judge Bornstein methodically reviewed the provisions of the law that deal with, among other things, the definition of a currency, and ruled that, given the way, the law is currently formulated.
"Bitcoin cannot be considered a currency, and he [Judge Shmuel Bornstein], therefore, accepted the Tax Authority’s interpretation, as expressed in 2018 circular," added Gidi Bar Zakay CPA.
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