Takeaway: although Israel law does not officially acknowledged the currency is a currency that would not admit it is a kind of securities, but when calculating the wages of the tax system do include anything of value will be included.
Israel’s high-tech industry is facing a severe talent shortage, with many companies competing for employees with higher salaries, stock options and better benefits.
In this environment, one such technology company seems to have found a new way to attract and retain technology elites: paying wages in bitcoin. Now, with the permission of the national authorities, this plan can be implemented.
Spot.IM plans to pay employee salaries in Bitcoin
Spot.IM, an Internet company with offices in Tel Aviv, is currently working with the Israel Securities Regulatory Authority (ISA) to apply for payment of employee wages in Bitcoin.
According to reports, the main point of communication is about the appropriate exchange rate, which is a key issue in the implementation of the plan. It is expected that the two sides will reach some agreements in the next month or so, which will enable the plan to advance.
The company also brought the matter to the attention of the labor department, which is monitoring the plan.
The plan is that any employee who wants it can accept their total wages or a portion of Bitcoin, and the company will bear the cost of the high Shekel conversion fee.
The plan says any employee can choose whether to accept bitcoin for all or part of their salary, and the exchange fee will be borne by the company.
Spot.IM is not part of the cryptocurrency ecosystem, but part of a well-established Internet industry.
It helps media sites manage their social activities and reviews, and its client list doesn’t include apps like Time Magazine, NBC, Huffington Post, and addiction. Big companies such as Engadget and Fox News.
Since its inception in 2012, the company has raised approximately $38 million in funding.
In the latest round of financing in November 2017, the company received $25 million in Series C financing from Russian billionaire Roman Abramovich and other venture capitalists.
Can they convince banks of bitcoin?
Although Israeli law does not formally recognize Bitcoin as a currency and does not recognize it as a security, the tax system does include anything of value when calculating wages.
In this regard, the company appears to be breaking the law without prior regulatory approval.
Except through legal support cautious, therefore, the goal seems to be mainly through the approval of the authorities, to prevent future series of banking system from unfriendly to bring trouble.
Ido Goldberg, head of Spot.IM’s operations in Israel, told the Israeli local newspaper Calcalist:
“As a person who is dealing with the most advanced technologies every day, we are a strong believer in the future of cryptocurrencies. However, money is built on trust, and it is necessary to create such trust companies, organizations and institutions. Recognize the legitimacy of cryptocurrencies.”