Israel simply did its best to make a decision that will result in more profits for the country. I think it's wrong to treat Bitcoin as an asset, but it would be okay if the tax was minor. It is, however, absolutely huge, and equals around 36% is this specific case. Moreover, the article mentions that traders not only pay the capital gains tax but an additional 17% value-added tax. I think it's an unfair treatment of people who bring innovation and attract investors into the country.
I hope, however, that other countries who still did not make their decisions about the way of treating cryptos for tax purposes will not follow the policies of Israel in this regard.