Israel vs Marshall Islands
Crypto regulation comparison
Israel
Marshall Islands
Legal
Legal
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.
The Marshall Islands passed the Sovereign Currency Act in 2018 to create the SOV, a blockchain-based national digital currency. No income or capital gains tax.
Tax Type
Capital gains
Tax Type
No tax
Tax Rate
25-50%
Tax Rate
0%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
ISA (Israel Securities Authority), ITA (Israel Tax Authority), CTMFA
Regulator
Banking Commission of the Marshall Islands
Stablecoin Rules
No specific stablecoin regulation; ISA exploring digital asset framework
Stablecoin Rules
No specific stablecoin regulation
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
- Sovereign Currency Act (2018) created SOV digital currency
- No income or capital gains tax
- Has been a popular jurisdiction for DAO registration
- Banking Commission provides oversight
- Limited domestic crypto adoption