The uptake on Israel’s crypto voluntary disclosure program remains modest relative to policymakers’ expectations, underscoring the challenges of using immunity from criminal prosecution to coax tax compliance in a rapidly evolving asset class. The policy, introduced to encourage disclosure and correct reporting of crypto holdings, became effective with an August 2025 framework that offers certain protections for filers who come clean and settle their liabilities.

Globes reported that the Israel Tax Authority has so far received disclosures totaling roughly $50 million in crypto capital, a fraction of the tens or even hundreds of billions that could be underreported, depending on holdings. The program’s design grants immunity from…