Internet Company Seeks Legal Permission To Pay Salaries In Bitcoin
One Israeli company from the IT sector thought of an innovative way of attracting and keeping tech-savvy employees: by offering to pay salaries in bitcoin.
Spot.IM, an Internet company headquartered in Tel Aviv, is negotiating with the Israel Securities Authority (ISA) regarding their proposed method of paying salaries. The discussions primarily focus on the appropriate exchange rate, an important factor in this matter, and it is anticipated that the parties will come to an agreement over the next month or so.
The company has also presented this proposal to the Labor Ministry, which states that its officials are examining the initiative. The plan involves giving the possibility to employees to receive the total or a portion of his paycheck in bitcoin, with the company covering the costs for the high exchange fees.
Spot.IM does not activate in the cryptocurrency sphere, being an established player in the Internet industry. Its business helps media websites curate their comments section, its list of list of clients including Time Magazine, NBC, Huffington Post, Engadget, Fox News and other important names.
Since it was founded in 2012, the company succeeded in raising a total of around $38 million, and its newest round in November 2017 raked in $25 million in Series C funding from Russian billionaire Roman Abramovich and other investors.
Isreali Law Regarding Bitcoin
While Israel’s law doesn’t give bitcoin any official status as a currency, nor a security, the tax system does allow assets of value to be incorporated into the calculation of salaries. Considering this, it’s not as if the company would break the law if they opted not to seek permission from the regulators beforehand.
Therefore, while it seems permissible to act on their own, there are many cautious steps required in achieving legal support, the objective being the prevention of future complications with the unfriendly banking system.
“As ones who deal with some of the most advanced technologies every day, we are great believers in the future of cryptographic currencies. Still, currencies are built on trust, and to create such trust companies, organizations and institutions will have to recognize cryptographic currencies as legitimate,” said Ido Goldberg, head of Spot.IM’s operations in the country.