Israel’s voluntary crypto disclosure program, intended to bring billions in hidden digital assets onto the tax rolls, has pulled in just 58 participants after more than a year. Those filers declared roughly $50 million in capital — a tiny fraction of the $1 billion in tax revenue the government had hoped to collect, according to program data.
Just 58 filings
The Bank of Israel estimated that residents held about $1 billion in digital assets during the first half of 2024. That means the disclosure program captured only a small piece of the overall market. The $50 million in declared capital represents the amount of assets participants chose to report, not the tax owed — but even if every filer paid the top capital gains rate, the revenue would be a far cry from initial projections.
The anonymity gap
One reason for the low turnout? There’s no way to file anonymously. A tax lawyer familiar with the program told local media that the absence of an anonymous submission option scared off many would-be participants, who worried that disclosing their holdings would trigger deeper audits or unwanted attention from law enforcement. Without that privacy guarantee, the program’s main selling point — immunity from criminal charges — wasn’t enough to attract the vast majority of holders.
Program mechanics and deadline
The scheme lets crypto holders fix past tax-reporting errors without facing criminal prosecution, as long as they comply with filing rules and pay any outstanding taxes. But there are limits: a cap of $522,000 in assets per filer (based on December 2024 exchange rates) and a deadline that runs only until August 31, 2026. With less than three months left as of this week, time is running short for anyone still on the fence.
What’s left in the shadows
Roughly $950 million in crypto holdings remains undeclared, based on the central bank’s estimate. The government hasn’t signaled whether it will extend the program or turn up enforcement after the August deadline. For now, most Israeli crypto holders seem content to stay in the dark — and the tax authority is left counting its losses from a disclosure push that never took off.
