The United States (USA) and United Arab Emirates (UAE), Iran and many other countries are taking action in the digital world. Israel, known for its crypto-friendly regulations, imposes restrictions on payments to encourage digital payments, including cryptocurrencies.
In a statement made by an Israeli official today; It was stated that restrictions were imposed on cash payments in order to combat illegal activities in the country and to promote digital payments.
Israel Wants to Prevent Illegal Activities with Digital Payment
From January 2019, Israeli businesses and consumers can make limited transactions under the Cash Reduction Act.
This measure, previously taken by Israel, was enacted to more easily track tax evasion, black market activities, and money laundering. Thanks to digital payments such as crypto money, which has turned into an advantage in the face of illegal struggles, Israel can more easily track transactions. For this reason, the country is directing its citizens and businesses to make digital payments.
The cash payment limits Israel has set for business transactions today are as follows:
- $1,760 or 6,000 Israeli shekels for business transactions,
- $4,400 or 15,000 Israeli shekels for personal transactions.
In the coming period, the amount of cash used in private housing purchases is expected to be reduced to $ 58,660 or 200,000 shekels, and further restrictions prohibiting stockpiling are expected. Meanwhile, the new limits on cash transactions are seen by some as a good sign for crypto adoption in the country.
Tamar Bracha, who is reportedly responsible for enforcing the law on behalf of the Israel Tax Administration (ITA), recently told Media Line that limiting the use of cash would increase the difficulty of criminal activity, saying:
“The goal is to reduce cash flow in the market, mainly because criminal organizations tend to rely on cash.”
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