Four members of the Israeli Knesset proposed to consider new amendments to the country’s Tax Code. They propose eliminating capital gains tax on bitcoin and other cryptocurrencies, Globes reports.

“The regulatory situation in Israel is not prepared for reality in this area. [Digital currencies] will remain the engine of growth that will enable the technology industry to develop and flourish,” states in the explanatory note to the bill.

In 2018, the Israeli tax authority equated cryptocurrencies with financial assets by obliging individual investors to pay a capital gains tax of 25%.

If the law is approved, cryptocurrencies will be taxed at lower rates.

In 2019, for citizens with an income below 75 720 shekels ($ 21 780), this figure was 10%.

One of the sponsors of the bill also urged the Knesset to consider blockchain technology as a solution for digital payment options during the pandemic. On the eve of the country’s legislature imposed quarantine due to an increase in cases of COVID-19 infection.