Israel's Supreme Court prohibits Leumi Bank from preventing exchanges from carrying out financial transactions with cryptocurrency

Israel's Supreme Court prohibits Leumi Bank from preventing exchanges from carrying out financial transactions with cryptocurrency

Israel's Supreme Court has ruled in favor of local cryptocurrency exchange Bits of Gold, issuing a temporary order prohibiting Israel's second-largest bank, Leumi Bank, from blocking the Bits of Gold exchange's transactions or bank accounts.

At the end of last year, it was reported that Bank Leumi stopped all transactions of the Bits of gold exchange, both incoming and outgoing. According to information in the case file, the bank stopped servicing the Bits of gold exchange in connection with its bitcoin transactions. The bank told the court that the problem was that it could not comply with anti-money laundering legislation due to the specific nature of cryptocurrencies.


In addition, the bank claims that this decision was in accordance with the Bank of Israel order. However, the order concerned the online gambling industry. Bank Leumi appears to have classified bitcoin exchanges as gambling sites, allowing it to block payments. Experts say that in December, when the bank decided to block payments related to cryptocurrency, bitcoin was in great demand, which was accompanied by record prices for cryptocurrency.


Yual Roche, CEO of the Bits of Gold exchange, issued a statement in response to the court decision: “The court decision gives us the opportunity to continue our activities. We were the first to advocate for the development of rules governing the business associated with digital currency, and we are the first to adhere to such rules. We will continue to develop the industry to allow digital currencies to find their rightful place in the Israeli economy."

Today's ruling by the Israeli Supreme Court is a huge victory for the entire cryptocurrency community. However, it is not an absolute victory, since Leumi Bank can circumvent the court's decision by applying restrictions on the accounts of individuals attempting to transact through the company.


According to https://www.newsbtc.com

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