Israel's Crypto Tax Amnesty Program Discloses Only $50M vs $1B Expected

Israel’s bid to recoup unpaid crypto taxes has fallen well short of expectations, highlighting a widening reporting gap as regulators step up scrutiny of digital assets. What happened - A voluntary disclosure program launched in August 2025—designed to allow eligible crypto holders to correct past filings and receive criminal immunity—was expected to surface up to $1 billion in undeclared profits. Instead, Israeli tax authorities have received disclosures covering roughly $50 million so far, according to Globes. - Just 58 taxpayers have used the program to amend earlier crypto tax filings, far fewer than officials anticipated. - To qualify for immunity, the program limits protection to taxpayers whose crypto holdings did not exceed $522,000 as of December 2024. Disclosures must be accurate and full tax payments completed by Aug. 31, 2026. Why uptake is so low Tax experts say structural features of the program may be discouraging participation. Iftach Simhony, a CPA and head of the tax department at Prof. Bein Law Office, told Globes the process lacks an anonymous initial track—an omission that can deter taxpayers who want to assess enforcement risk before exposing themselves to the authorities. In crypto cases, where privacy concerns and traceability are heightened, that barrier can be especially significant. The broader picture Israeli officials still believe substantial crypto profits remain outside the tax net. The gap is underscored by the Bank of Israel’s financial stability report for Jan.–Jun. 2024, which estimated Israelis held about $1 billion in crypto assets—far above the $50 million disclosed under the program so far. Regulatory context The weak response to the voluntary program arrives amid growing regulatory focus on digital assets in Israel. The Bank of Israel is reassessing the role of private digital currencies in payments and has been moving toward tighter stablecoin regulation, arguing stablecoins are moving beyond trading desks and into everyday payment discussions. Global parallels Tax reporting for crypto is also a live issue elsewhere. In the U.S., members of Congress introduced the PARITY Act in May, which would direct the IRS to review a de minimis exemption that could remove the need to report certain small crypto transactions—part of a broader debate about balancing enforcement with the reporting burden for routine digital-asset payments. What this means The low take-up of Israel’s amnesty-style program suggests voluntary disclosure alone may not be sufficient to pull large amounts of undeclared crypto into the tax system. Policymakers will likely weigh whether to revise the program’s anonymity and eligibility rules, pursue stronger enforcement measures, or offer different incentives to close the reporting gap.