Israel's voluntary cryptocurrency tax disclosure program launched in August 2025 has received only 58 crypto-related disclosure requests, revealing approximately $50.7 million in hidden digital-asset capital, according to a report by Globes. The Israel Tax Authority removed the anonymity feature that characterized previous disclosure rounds, a policy change tax advisers identify as the primary deterrent to participation. The program, which runs until Aug. 31, 2026, has generated an estimated $14 million in tax revenue across all asset types, falling far short of authorities' $700 million to $1 billion collection target and the State Comptroller's identification of $1.04 billion in unrealized crypto tax revenue.
Israel Tax Authority Collects $14 Million Against $700 Million Target
Since the Israel Tax Authority launched the initiative in August 2025, only 58 crypto-related disclosure requests have been filed, revealing roughly $50.7 million (145.8 million shekels) in hidden digital-asset capital. The broader program covering all forms of concealed wealth has received 289 disclosure requests across all asset types, reporting approximately $236 million in hidden capital and generating an estimated $14 million in tax revenue. The State Comptroller had identified $1.04 billion in unrealized crypto tax revenue.
Anonymity Removal Deterred Crypto Holders from Disclosure
Unlike previous disclosure rounds, the current program does not allow taxpayers to file anonymously while assessing their exposure. Iftach Simhony, a lawyer, certified public accountant, and partner and head of the tax department at Prof. Bein Law Office, said the change fundamentally altered the incentives. "The cancellation of the anonymous track not only deterred taxpayers, it changed the balance of power in the process," Simhony said. "Everything is exposed to the Tax Authority, and there is no real ability to negotiate. The taxpayer is required to enter the process before knowing what the actual exposure will be, and therefore many prefer to stay out."
Simhony added that the impact is even more pronounced in digital assets, where taxpayers often have complex transaction histories and uncertain tax liabilities. "When the procedure itself does not offer certainty or anonymity in the first stage, the incentive to undergo voluntary disclosure is weakened."
The Tax Authority had intensified efforts to track undeclared crypto profits even before the program launched, following criticism from the State Comptroller over lax enforcement. The agency has been working to identify "black" capital circulating through digital wallets, offshore exchanges, and peer-to-peer channels.
Program Runs Until Aug. 31, 2026 with Historical Underperformance
The new disclosure track runs until Aug. 31, 2026. Israel's previous voluntary disclosure rounds in 2011-12, 2014-16, and 2017-19 collectively handled about 9,000 cases and generated $1.74 billion in tax revenue. By comparison, the current program is on pace to be the least effective to date. Even with a simplified "green track" for small amounts, including crypto gains, experts say the lack of anonymity has overshadowed the program's benefits.
FAQ
How many crypto disclosures has Israel's tax program received since August 2025?
The Israel Tax Authority has received 58 crypto-related disclosure requests since launching the program in August 2025, revealing approximately $50.7 million in hidden digital-asset capital.
Why did Israel's voluntary crypto tax disclosure program underperform?
Tax advisers attribute the underperformance to the removal of the anonymity feature that characterized previous disclosure rounds. Iftach Simhony stated that "the cancellation of the anonymous track not only deterred taxpayers, it changed the balance of power in the process," requiring taxpayers to enter the process before knowing their actual exposure.
When does Israel's current voluntary disclosure program close?
The current voluntary disclosure track runs until Aug. 31, 2026.
