Israel expected $1B in crypto disclosures — got $50M

The Israel Tax Authority expected roughly $1 billion from voluntary cryptocurrency disclosures under an August 2025 immunity program but has recorded about $50 million from 58 filers to date.

The program offers immunity from criminal proceedings for holders whose crypto value did not exceed the equivalent of $522,000 as of December 2024, provided they file corrected tax returns and pay all taxes by Aug. 31, 2026. The authority designed the limited-time window to increase tax compliance without immediate criminal enforcement.

Officials cite practical and behavioral barriers to voluntary reporting. Some taxpayers have been reluctant to come forward without guarantees of anonymity or certainty about the legal treatment of disclosures. Tax advisers point to the difficulty of tracing crypto assets and a perceived low enforcement risk for some holders as factors reducing the incentive to use the program.

Iftach Simhony, a CPA and head of the tax department at the Prof. Bein Law Office, described the absence of an anonymous initial stage as weakening the incentive: “When the risk assessment of some taxpayers is not high, and the procedure itself does not offer certainty or anonymity in the first stage, the incentive to undergo voluntary disclosure is weakened.”

The Bank of Israel reported that residents held about $1 billion in crypto assets in the first half of 2024, a figure the tax authority used to estimate the potential pool of undeclared holdings. So far, corrected crypto capital reports total about $50 million.

Collections under the program continue through Aug. 31, 2026.