Israel’s Attorney General Says Banks Can’t Refuse Services To Crypto Firms

[Kemarit]

Israel’s Attorney General Says Banks Can’t Refuse Services To Crypto Firms

Israel’s Attorney General refutes court’s blanket ban on crypto related transactions in banks and financial institutions. The AG disagrees with the two-year long blanket ban on banks dealing with crypto payments stating that “each case should be handled individually to check for any case of money laundering.”

https://coingape.com/israels-attorney-general-says-banks-cant-refuse-services-to-crypto-firms/

First time I heard that an Attorney General went against a ban coming from a financial institutions.

It's going to be interesting to see what the outcome of this, although Israel is not well known for being a supporter of crypto or least a big slice on the pie of the crypto related activities, it might be very fascinating to follow this one.

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[jseverson]

Yeah, it seems like it's only a matter of time until their banks are forced to accept it. The Israeli version of SEC is interested in exploring the possibility of a digital market in Israel:

The regulator posed several questions to the public to improve blockchain’s regulatory standing in the country. Development of capital markets is a primary concern, with the ISA directly asking for provisions that “impede the development of a digital market in Israel.” The committee also asked for information on additional risks and use cases specific to the trading of DLT-based securities.

That, plus an actual court actually ruled that blanket bans shouldn't be imposed last year:

An Israeli court ruled on March 17, 2019, that banks can't enforce a blanket ban against all accounts linked to cryptocurrency. Instead, the court said, banks need to consider the specific type and scope of crypto-related activity before determining whether or not to open an account.

It's funny seeing the government telling banks to actually do their jobs lol.

[hugeblack]

They may have found it wise to take advantage of some of the cash flows that might occur instead of imposing a comprehensive ban.
Do not forget that the government can freeze any account if it "doubts that it can be used for money laundering" or any criminal activity.

The scenario is more open and it makes banks reconsider how they do their work rather than making it easier for them.

[LeGaulois]

Banks in Israel usually don't like to process transactions coming from a foreign country. Cryptocurrency or not doesn't matter, it happens with different activities like real estate.

The reason is that the US Department of Justice accused them to help US citizens to launder money and evade taxes, there's been a criminal investigation over the past seven years. (The bank Leumi admitted doing it) During a time we used to say Israel is the Switzerland of the Jews. Nowadays the banks try to save the face in case the US bothers them again.

Even when the courts order a bank to accept funds from cryptocurrencies, it does it reluctantly... I remember an Israeli Bitcoin association trued to push the central bank but without positive results, it didn't even bother to reply.

[dothebeats]

It's interesting to see the clash between banking entities and the government on this scenario. Usually, the governments just go with whatever the banks do, and sometimes back it up with their own regulations to ensure that everything that a banks do is siding with whatever laws are imposed. Right now, the AG does pose to me as a logical dude who actually thinks of the possibilities and not just jump into negative conclusions without even trying to do anything.

Level-headed government officials are so rare these days, and some of them easily gets swayed by public opinion on what and what not to do. Clearly the AG does his homework and sees some good light in removing blanket bans on banking institutions.

[Kemarit]

That's why this case is really very interesting, government agencies pushing banks to accept crypto, on the contrary we have seen nations out there doing the opposite. Central banks has the authority to order a full crypto ban or at least hard line stance and no one from any judiciary is fighting or at least opposing those views.

So can we say that we lauded the Attorney General's move here and telling banks to shut the f**k up, LOL.

[avikz]

It's great to see that Israeli government is looking at the bigger picture and making themselves future ready while all other third world countries are busy in evil conspiracies to issue a blanket ban on cryptos. This incident might work as a solid example in the arguments happening in the Supreme Court in India against the banking ban on cryptos. I have said it earlier as well, that it depends on the mentality of the government. Any progressive government with development in mind would welcome cyrptos with arms wide open, while oppressive governments will try to deprive their people from cryptos because they wouldn't want their people to succeed. Classic example - India!

[BlackFor3st]

Israel’s Attorney General Says Banks Can’t Refuse Services To Crypto Firms

Israel’s Attorney General refutes court’s blanket ban on crypto related transactions in banks and financial institutions. The AG disagrees with the two-year long blanket ban on banks dealing with crypto payments stating that “each case should be handled individually to check for any case of money laundering.”

https://coingape.com/israels-attorney-general-says-banks-cant-refuse-services-to-crypto-firms/

First time I heard that an Attorney General went against a ban coming from a financial institutions.

It's going to be interesting to see what the outcome of this, although Israel is not well known for being a supporter of crypto or least a big slice on the pie of the crypto related activities, it might be very fascinating to follow this one.

As long as there is a profit then banks will surely grab this opportunity especially if it will be against the rules of Israel's government. Having someone that will help the crypto to spread further in a country is a good news to all crypto lovers.

And if Israel will adapt crypto currencies then it will surely help the people there to easily cash out and convert their crypto to fiat via their local exchange that will be back by their local banks. Let's just hope that there will be more people that will support the statement of Attorney General.

[Harlot]

This is big considering that an Attorney General is one of the most powerful man in a country, this man could simply put up a massive investigation when these banks simply just decline crypto related businesses without even giving them a chance. However this opinion is only coming from one man and I don't think that could be any difference if other people and departments have a different view against the blanket ban the Israeli government have on crypto. This may be a start but it cannot change the tide for their crypto industry there, maybe if he have some support from other senators and justices we might see some changes but as of right now I don't expect him to do anything about it alone.

[Kemarit]

It's great to see that Israeli government is looking at the bigger picture and making themselves future ready while all other third world countries are busy in evil conspiracies to issue a blanket ban on cryptos. This incident might work as a solid example in the arguments happening in the Supreme Court in India against the banking ban on cryptos. I have said it earlier as well, that it depends on the mentality of the government. Any progressive government with development in mind would welcome cyrptos with arms wide open, while oppressive governments will try to deprive their people from cryptos because they wouldn't want their people to succeed. Classic example - India!

Right, we just have to look at India as the other example of the spectrum. Look at what their central bank is doing, but the only one that is fighting is the people, and as much as they exert effort, they can't do anything about it because RBI has already shut down the doors for crypto enthusiast. Of course, legality wise, people file complaints, but I don't think they will suddenly make a U-turn.

That's why Israel's Attorney General has the balls to stand up and call their banks wrong.

[tabas]

Well, what can we say when a country's reaction is like this towards cryptocurrency? Unlike in India, the known reports and news is that the banks there are not allowing transactions coming from crypto exchanges (cmiiw).
I don't know what's the equivalent of atty. gen in some other countries but it's a huge title.