Israeli Supreme Court Forbids Bank From Denying Service to Bitcoin Exchange

[danilogmachado]

The Supreme Court of Israel issued a temporary injunction order on Monday forbidding Bank Leumi from sweepingly halting the account activity of the Bits of Gold bitcoin exchange. This is seen as a major victory in the Israeli cryptocurrency industry that will set a precedent for other bitcoin businesses struggling to get banking services.


Bits of Gold vs. Leumi
Israeli Supreme Court Forbids Bank From Denying Service to Bitcoin ExchangeSince its inception in 2014, Bits of Gold has, which is licensed as a currency changer business, always held an account with Bank Leumi – one of the top two biggest banks in the country. In 2015, the bank decided to close its account despite the company’s meticulous conduct – only because the company deals in bitcoin, and then Bits of Gold decided to apply to the court for permission to continue using the account.

For several years Bits of Gold worked with an injunction that allowed it to act until a final verdict. A few months ago, the District Court authorized the bank not to allow Bits of Gold to trade in bitcoin, even though it praised its activities.

The company appealed this decision to the Israeli Supreme Court, which immediately issued a temporary injunction, and on Monday passed a temporary order according to which the company can trade digital coins in its account until a ruling is issued on the entire appeal.

The Supreme Court wrote: “It appears that the damages that the bank might incur are mere speculations for now. The decision of the bank is based on the assumption that the company’s activity indeed carries risks that arise in violation of the provisions of the law, and therefore the bank is liable to pay a price for the materialization of those risks. However until now, for more than five years in which the account has been operating, these fears have not materialized – as the District Court has determined that the company acted transparently and did not violate any statutory provision.”

Bank Leumi Not Giving In
Israeli Supreme Court Forbids Bank From Denying Service to Bitcoin Exchange“This is a precedent-setting decision whose importance can not be overemphasized in relation to the trading of digital currencies,” said lawyer Shaul Zioni of the legal firm who represented the company. “The court says banks actually can not ban the company’s activities sweepingly and that they should manage their risk.”

Yuval Roash, CEO of Bits of Gold said, “The court’s decision enables us to focus on continuing to establish the crypto community in Israel, and we will continue to lead the field in order to give digital coins the place which they deserve in the Israeli economy – as a tremendous growth engine for hi-tech and the financial industry. ”

Bank Leumi responded: “The bank respects the decion of the court. However, as long as the matter is not regulated by orderly regulatory directives, the bank’s exposure to the client’s activity in bitcoin will be valid – and not only towards the regulators in Israel who are obligated to respect the decisions of the Supreme Court, but also towards foreign regulators who do not consider themselves bound by the decisions of Israeli law. Therefore, as long as no binding legal provisions are determined by the regulator and the relevant parties, the bank will continue to manage the case until the temporary injunction is removed. ”

Should banks be allowed to refuse to open accounts for bitcoin companies? Share your thoughts in the comments section below!

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[tweetbit]

Should banks be allowed to refuse to open accounts for bitcoin companies? Share your thoughts in the comments section below!

Bitcoin profits isn’t from an illegal activity of some sort, so refusing an individual or a company from opening such account in a bank is against the law in some states. I don’t know how Israeli stands on cryptocurrency but if this victory reflects the situation, it is a good sign as a whole in that country and the bitcoin users who deal the same scenario. Banks make this excuses because of self-interest that is against the right people’s principles.

[audaciousbeing]

The Supreme Court of Israel issued a temporary injunction order on Monday forbidding Bank Leumi from sweepingly halting the account activity of the Bits of Gold bitcoin exchange. This is seen as a major victory in the Israeli cryptocurrency industry that will set a precedent for other bitcoin businesses struggling to get banking services.

This is not a major victory yet because the injunction is a temporary one rather than permanent which would have been a concealing victory because Supreme Courts are not known to change a position where a definite position has been taken but this, it is still subject to further discussions and arguments and within the time frame, a whole of things can still change for either the worse or the bad and until then we need not rejoice so it wont be short-lived.

Reading the historical argument I think either way this fall into, it has open a new point of action that despite the fact that Banks can refuse customers for transacting with them, they cannot just do it without the right laws backing them to do such things and same thing should be applied to exchange sites that  in their own volition close clients account without any explanation.

[Fobrins]

Israelis know how to do it. They will not miss the fast train called cryptocurrency.
They need to stick together and in their interest is to get into crypto.

[Claudyah]

This prohibition may disrupt investment in the company and may even be excluded from trading on the stock market,

[darkangel11]

Israelis know how to do it. They will not miss the fast train called cryptocurrency.
They need to stick together and in their interest is to get into crypto.

Sure, they know how to make money and take other people's property. They are consuming Palestinian territories like a hungry dog sausages
Of course it's great to see that they're open to innovation and technology and understand that exchanges and their clients pay taxes and those taxes end up in the budget. A budget that is being drained by their war machine, so they aren't in a position to say no to the money.

[sindikat]

Are you an anti-Semite? I do not understand your claims against Israel. What a clever man would refuse the money? Why are you sure this money is going to buy weapons? You better pay attention to the fact that the Israelis are suing and defending the rights of its users. Most banks and exchanges in Europe and America hand over their clients without a fight.

[darkangel11]

Are you an anti-Semite?

I guess you're responding to my post. It's funny how people these days are always reaching to extremes. You point out the facts and get compared to an anti-semite, just like when you point out something that gay people do you instantly get called a homophobe. Speaking of which

I think the homosexuals are sick people. They have no place on the streets. They are not only the patients themselves but also is contagious to others. Those who have mental problems because of childhood trauma can vote their way and then these people will be lost to society.

I'm not against Jews as people, so I'm not an anti-semite, but it doesn't mean that I have to condone their actions and never voice my opinion.

I do not understand your claims against Israel.

What's there not to understand?
Are you not aware that Jews have taken Palestine by force and are constantly in a state of war, or do you want me to link you to the maps and news outlets?
As for the war machine, you probably don't know that Israel did not sign the non-proliferation treaty, which puts it on the same level with North Korea, but since they have a lot of money nobody cares that they're packing. The world is more afraid of Kim, while Jews can be mass producing nuclear weapons as we speak.

[carlfebz2]

Should banks be allowed to refuse to open accounts for bitcoin companies? Share your thoughts in the comments section below!

Bitcoin profits isn’t from an illegal activity of some sort, so refusing an individual or a company from opening such account in a bank is against the law in some states. I don’t know how Israeli stands on cryptocurrency but if this victory reflects the situation, it is a good sign as a whole in that country and the bitcoin users who deal the same scenario. Banks make this excuses because of self-interest that is against the right people’s principles.

I'm not surprised that Banks would always been opposing into these kind of scenarios when it comes to involvement of bitcoin/crypto inside into their territory since they are just thinking up mainly for themselves and sharing up a spot or space cant really be considered on their side but we know theres always been an opposing parties which is more higher (regulators) will make such decisions.Once they decide then banks cant do anything about it but to accept.This is really a good indication on positive adaptation of bitcoin and other crypto.