A voluntary disclosure program Israel launched to let residents come clean about undeclared cryptocurrency holdings is barely getting off the ground. New data released this week shows that only a small share of the country's undeclared digital-asset wealth is actually being reported. And the problem isn't limited to crypto — the program is underperforming across every asset class it covers.
Low turnout across the board
The numbers aren't pretty. According to the authorities, the pool of filers so far represents just a sliver of the undeclared wealth the program was designed to capture. Crypto holders, in particular, aren't lining up. The disclosure window was meant to give people a chance to regularize their tax affairs without facing the full force of penalties. But the uptake suggests many would rather stay in the shadows.
It's not just digital assets. The program’s weak results extend to other types of undeclared holdings as well. That broader failure makes the crypto piece look less like a unique problem and more like a symptom of a system that isn't convincing people to come forward.
Why the reluctance
The exact reasons aren't spelled out in the data. Some holders may worry that disclosure still carries legal risk. Others might be holding out for a better deal. The program's terms could be too tough or the threat of detection too low. Whatever the mix, the outcome is clear: the amnesty isn't working as intended.
This isn't the first time a voluntary disclosure program has fallen short. But in a year when regulators globally are pushing for more tax compliance in crypto, Israel's experience stands out as a cautionary tale. Officials haven't said whether they'll extend the deadline or sweeten the terms. For now, the clock is ticking and participation remains low.
