The Israeli government has initiated an exploratory examination dedicated to the methodology of regulating Decentralized Autonomous Organizations (DAOs). The team set to carry out this survey, headed by the Chief Economist at the Ministry of Finance, and the Head of the Corporations and Capital Market Cluster at the Ministry of Justice, intends to dive into an in-depth study of the activities and uses associated with DAOs.
One of their primary targets will involve scrutinizing the involvement of crypto tokens within DAOs, whilst assessing the inherent risks accompanying such use. The objective at hand aims to strike an equilibrium that will encourage innovation, while also preserving the vested interests of stakeholders. This team will also tread the territories of corporate status, taxation aspects and other DAO facets to reduce risk factors and encourage growth potential for the Israeli economy.
This proactive move by the Israeli government is an attempt to widen the spectrum of comprehensive regulations set in place for the flourishing crypto industry. In a recent development, lawmakers in Israel have revealed a potential initiative to remove capital gains taxes for foreign crypto investors, a step taken to attract international investments into the country. A preliminary reading in the parliament has on-boarded a bill, granting exemption from capital gains taxes on digital currency sales for foreign residents in Israel, further fostering the crypto economy.
The Israeli government has also made an open call for public input regarding these potential DAO regulations, with a consultation period that continues till September. DAOs, by operating via blockchain technology and crypto tokens, enable stakeholders to participate in various decision-making processes.
This movement is quite parallel to the recent actions of Rishi Sunak and fellow lawmakers in Europe. Concurrently, Finance Minister Bezalel Smotrich has invigorated the local sector, extending an invitation for global investors and companies to engage in business opportunities in their resurgent market.
This resurgence comes on the heels of Israeli authorities seizing millions of dollars worth of cryptocurrency, suspected to fund Iran-backed militant organizations. This follows earlier instances of confiscation of large amounts of cryptocurrency linked to Hamas. For Israel, this exploration of the DAO and crypto regulatory framework signifies a step in the direction of modern financial regulations that adapt to the changing economic landscape.
Source: Cryptonews
