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Israel governments to reduce ceilings to $4,400 - will this boost the usage of privacy coins?

 

By Nerly Shammah Jul 30, 2022

 

 

The governments of the world appear to be really tightening up the screws as financial operations face numerous adjustments in recent times. Primarily, we see the urgency in amendments to laws surrounding finance as crime practices expand on a daily basis. 

 

The idea of putting a limit on how much a  spending ceiling is proposed by the Israeli government as a way of combating the easy flow of dirty money, thus,  fighting against criminal activities such as money laundering, tax evasion, and terrorist financing. 

 

To be effective from August 2022, several ranges have been set up as an updated restriction to the payment amount allowed to flow through cash in Isreal amongst businessmen and individuals. Judging from the intractability of cash, the law, inter alia, was enacted in march 2018. 

 

By August, business owners and individual spenders will be under the adjusted law of payment restrictions through cash.

The law outlines as follows:

 

● No cash payment may be given or received in a transaction exceeding 6,000 NIS(Israeli New Shekel)($1760.02)

 

● No cash payment may be received from a tourist in a transaction exceeding 40,000 NIS(Israeli New Shekel)($11733.46)

 

● No cash payment may be given or received as a wage, donation, or loan in an amount exceeding 6,000 NIS(Israeli New Shekel)($1760.02) there's an exception that may apply to loans granted by supervised financial entities. 

 

● No cash payment may be given or received as a gift in an amount exceeding 15,000 NIS(Israeli New Shekel)($4400.05)

 

Violation of the law will result in several ranges of fines based on the transacting amount.

 

If the violating transaction amount is below 25,000 NIS, then the fine will be 15%, if it is above and up to 50,000 NIS, the fine will be 20%, and transactions above 50,000 are charged 30%. 

 

Several other ranges and restrictions are further explained here. Reports have it that additional measures prohibiting Israelis from holding more than 200,000 shekels ($58,667.28) in cash at home are expected in the future. 

 

Will This Boost The Usage Of Privacy Coins?

 

Whether or not it boils down to the financing of terrorists and other criminal practices, based on our assertions, the tightening of cash flow, may, as a cause and effect of restrictions cause a load of entities and individuals to adopt cryptocurrencies with privacy integrated algorithms.

 

Digital money is traceable when it's issued by banks, in light of the threats untraceable and uncontrollable money causes, governments of the world are currently exploring the building and implementation of central bank digital currencies(CBDCs).

 

Privacy coins are built to grant their users confidentiality in transacting value/amount, cash at hand shares a similarity, and whether or not this will cause Israelis with care for privacy to migrate to privacy coins is only a matter of time.

 

Note that these restrictions apply only to cash and checks.