Israeli Social Media Business Wants to Pay Employees in Bitcoin
Israel’s booming technology sector is experiencing a talent shortage, with firms introducing new perks and lucrative benefits to attract skills employees. One such firm is offering a digital currency incentive.
Firm Propagates Bitcoin Adoption
Spot.IM’s legal head Itay Bracha made clear the bitcoin salary will be subject to relevant Israeli legislation. The firm is currently seeking requisite permissions from the Israel Tax Authority for the proposal and defining a framework for standard exchange rates.
The company plans to approach a cryptocurrency exchange for opening the dedicated account as the monthly salary will be converted to BTC and transferred to the employee’s wallet.
Spot.IM is aware of the pioneer cryptocurrency’s infamous price volatility and will ensure that employees are not affected when receiving their pay. The company will calculate the average price of bitcoin on payday, by determining the mean between BTC’s daily high and low and use it as the standard rate for all employee payments.
Regardless of Israeli authorities allowing the move, Spot.IM will still offer a fiat salary to employees alongside an option to receive half their salary in the pioneer cryptocurrency.
Employees Accept Move
Reportedly, Spot.IM employees have acknowledged the development and appreciate the company will cover the high conversion rates. However, no other benefits will be paid in bitcoin, such as pension or additional funds.
Ido Goldberg, Spot.IM head of operations stated:
“As one of the most advanced technologies, we believe in the future of cryptographic currencies, but trust is built on trust. We will have to recognize cryptographic currencies as legitimate.”
In February 2018, Israel announced all cryptocurrencies are assets and subject to a capital gains tax. The country charges 25 percent tax on all cryptocurrency profits, meaning if Spot.IM employees choose to hold their salary and gain profits they will incur a relatively hefty tax.
Founded in 2012 and headquartered in New York, Spot.IM describes itself as a social community building business. The firm has raised over $38 million since August 2016 and has offices in Tel Aviv, New York, and Jerusalem.