Learn about the most liquid and used crypto-to-fiat pairs for the Israeli New Shekel. These pairs are the gateway between the traditional finance system and crypto for the Israeli New Shekel.
In Israel, the most commonly traded cryptocurrency-to-fiat pairs involving the Israeli New Shekel (ILS) include:
BTC / ILS: Bitcoin remains the most prominent cryptocurrency, and its exchange rate with the ILS is frequently monitored.
USDT / ILS: As a stablecoin pegged to the U.S. dollar, Tether provides a stable trading option against the ILS.
BCH / ILS: Bitcoin Cash is another cryptocurrency that is often traded against the ILS.
Regarding the cryptocurrency market in Israel, here are some key points to consider:
Taxation: Profits from cryptocurrency transactions are considered capital gains and are taxed at a rate of 25%. Those involved in cryptocurrency mining or trading as a business are subject to corporate income tax and may also be liable for value-added tax (VAT).
Regulatory Environment: Cryptocurrencies are not recognized as legal tender in Israel. The Israel Tax Authority classifies them as assets, making them subject to capital gains tax. Individuals can exchange cryptocurrencies for ILS, but the government does not back any digital currencies. The country is exploring a central bank digital currency (CBDC), referred to as the Digital Shekel.
Market Growth: Israel has seen significant growth in cryptocurrency adoption. In 2023, approximately 1.24% of Israelis owned cryptocurrency; this figure has now risen to 7.3%. The country's robust tech ecosystem has contributed to this increase, with numerous startups and established companies engaging in the crypto space.
Investment Opportunities: Israeli firms have been active in the cryptocurrency sector, with companies like eToro and Fireblocks leading in fundraising efforts. Over the past decade, crypto companies in Israel have raised approximately $3.8 billion, with $1.7 billion coming from just six companies.
