Israel vs Iraq
Crypto regulation comparison
Israel
Iraq
Legal
Banned
Cryptocurrency is legal in Israel and treated as a taxable asset. The Israel Tax Authority classifies crypto as property, subject to 25% capital gains tax (or up to 50% for significant shareholders or high earners). Israel has a vibrant blockchain ecosystem with many startups and R&D centers.
Iraq has banned cryptocurrency dealings. The Central Bank of Iraq issued a directive in 2017 prohibiting banks, financial institutions, and exchange companies from dealing in cryptocurrency. Despite the ban, some underground and peer-to-peer crypto trading reportedly persists.
Tax Type
Capital gains
Tax Type
Unclear
Tax Rate
25-50%
Tax Rate
N/A
Exchanges
Yes
Exchanges
No
Mining
Yes
Mining
No
Regulator
ISA (Israel Securities Authority), ITA (Israel Tax Authority), CTMFA
Regulator
CBI (Central Bank of Iraq)
Stablecoin Rules
No specific stablecoin regulation; ISA exploring digital asset framework
Stablecoin Rules
Not applicable; crypto activities prohibited
Key Points
- Capital gains tax of 25% on crypto profits (up to 50% including surtax for high earners)
- Israel Tax Authority classifies cryptocurrency as property, not currency
- ISA is developing a regulatory framework for digital asset trading platforms
- AML/KYC requirements apply to crypto service providers under CTMFA supervision
- Israel has one of the highest densities of blockchain startups globally
Key Points
- CBI banned all crypto dealings by financial institutions in 2017
- Exchange companies are prohibited from handling cryptocurrency
- No regulatory framework for crypto businesses
- Underground and P2P crypto trading reportedly exists despite the ban
- The ban is motivated by AML concerns and financial stability considerations