Max and Bits of Gold launch crypto-cashback credit card in Israel

Max and Bits of Gold launch crypto-cashback credit card in Israel

Max and Bits of Gold have entered into a strategic initiative to launch a new and unique MaxBack Crypto currency VISA Card that will offer cashback in Bitcoin on credit card transactions. ‘Max’ is Israel’s credit card and payment solutions company and ‘Bits of Gold’ is the largest cryptocurrency broker in Israel since 2013. This strategic partnership will open up opportunities for both companies in a market with more than 3 million credit cards, a very large proportion of the Israel market.

MaxBack Crypto card will allow the users to collect eligibility for Bitcoin cashback depending upon their purchases with the card. The card is expected to roll out in the coming few weeks, subject to regulatory approval, however, a preliminary registration for updates on the card has been launched.

Bits of Gold, the Largest Cryptocurrency broker in Israel, is regulated under the Israeli Capital Market Authority and has reached an agreement with the Tax Authority to ease some of the tax burdens on the Israeli customers interested in trading digital currencies, like Bitcoin. The major focus of these agreements is to deduct tax from the seller of digital currency (for example, Bits of Gold) in a” closed circuit”, without passing these obligations to the customers. In simpler terms, customers will be able to trade in Bitcoin without reporting to the tax authority. 

Max’s Chief executive officer, Ron Fainaro, said: “We are proud to be the first financial entity in Israel to launch a credit card with a crypto cashback program. The momentum and great public interest in digital currencies developing worldwide cannot be ignored, and therefore, I believe in the importance of us being there for our customers. We are happy to be leaders in financial innovation in the cryptocurrency ecosystem in collaboration with Bits of Gold, the oldest Israeli company in this field. Together, we will provide the Israeli public, willing to enter this innovative field cautiously, with a connection to the world of digital currencies. With Max, anyone can own Bitcoin and take the first steps in this new domain."

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Bits of Gold Chief executive officer, Youval Rouach said: “I am excited with the launch. Bitcoin and digital currencies are the new financial reality. The MaxBack Crypto credit card is an opportunity for many Israelis to comfortably take the first steps in this new reality, opening the door to enjoy the possibilities that the world of digital currencies offers. Our cooperation will allow Israelis to securely connect to this ecosystem and hold Bitcoin with unprecedented ease. Bits of Gold is in its tenth year of pioneering the field of digital currencies, and we are happy to work with a large-scale financial entity like Max, which welcomes innovation and strives towards it for its clients”

How will it work?

Bits of gold will open an account for the user of the new credit card. Max will transfer 1 Israeli shekel (ILS) to the account for every 160 ILS spent with the card (subject to the terms and conditions), and then Bits of gold will convert to Bitcoin and will be kept in a personal wallet of the user. Bitcoin holdings won’t include any additional charges to the card user. The market value of bitcoin is highly volatile and currently, one ILS is worth 10 micro-bitcoin, also known as bits. This way, users can collect bitcoins over time and convert them into ILS and send them back to their bank account at their convenience.

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The cardholders can track their Bitcoin holdings in the Max app and also buy other crypto coins like Bitcoin and Etherium, at a 6% discount on the purchase fees.