Every bank in Israel is being sued by Bitflash LTD, a company that was only established in January. The Acre-based company was launched as a cryptocurrency trading service. Sadly, it never got off the ground. The company has been denied a bank account by every single bank in Israel. Being an exchange, Bitflash LTD wouldn’t be able to receive any legal tender from their clients without a bank account. This rejection by the banks is squashing their company.
On Sunday Bitflash LTD approached the Tel Aviv District Court and requested that they force the 11 banks in the country to open accounts for the business. Bitflash LTD personnel have pointed out that it is a violation of the law to refuse them accounts. They even went on to point out they have opened up similar account for companies that take part in a similar businesses.
Bitflash LTD stated in their lawsuit that they are concerned that the banks are illegally incorporated as a cartel and are purposely preventing Bitflash from opening of an account. With that, they are causing the company damages with every passing day.
Initially the case didn’t look very hopeful for the company. Last year, during the case of Bits of Gold vs. Leumi the courts ruled that banks have the full right to refuse to work with cryptocurrency. The move to focus on the banks working as a cartel changes the direction of the lawsuit. Painting them as a collective power that is preventing businesses from embracing a growing industry will not make them look good in the eyes of the public.
Are the banks just following basic policy by rejecting Bitflash LTD, or are they threatened by the rising presence of Bitcoin and other cryptocurrencies? This case will no doubt break grounds within Israeli society.