Written: CPA Larry Stern  The Israel Tax Authority recently announced that bitcoin and other cryptocurrencies would be taxed as a capital asset, not a currency. Israel had been considering the measure since 2013. The decision, announced in a circular on Feb. 19, means that cryptocurrencies are subject to capital gains tax for individual investors, and marginal rate taxation for those considered to be running businesses of cryptocurrency trading. Individuals who are mining or trading in cryptocurrencies, will be required to account for VAT (currently 17%), as per any standard business. This announcement comes as many Israeli banks have attempted to close the accounts