Key facts
- Israel's voluntary crypto disclosure program attracted only 58 taxpayers.
- The tax authority expected to collect $1 billion but received only $50 million.
- The program offered criminal immunity for crypto holders with investments under $522,000.
- The program was launched in August 2025 and required full tax payment by August 2026.
- Israeli citizens are estimated to hold over $1 billion in cryptocurrency.
Israel's tax authority has expressed disappointment with the low turnout for its voluntary cryptocurrency disclosure program, enacted in August 2025. Authorities had anticipated collecting up to $1 billion in taxes from individuals reporting their crypto holdings and profits, but only 58 taxpayers participated. The program offered criminal immunity for those with investments under $522,000 who paid all taxes by August 2026. The tax office has so far received reports totaling approximately $50 million in crypto capital. The Bank of Israel's 2024 financial stability report indicates that Israeli citizens hold over $1 billion in cryptocurrency, suggesting a significant amount of undeclared assets. The shortfall in expected revenue and low participation may lead to intensified regulatory crackdowns, forced tracking of digital wallets, and increased audits for local digital asset traders.