The cryptocurrency community won big on February 26 as the Israeli Supreme Court came to a decision that called for the country’s banks to allow cryptocurrency trading. They also prohibited the banks from limiting the accounts belonging to companies associated with the cryptocurrency industry. That said, the court also issued that a temporary court order that denies Israeli bank, Bank Leumi from limiting Bits of Gold’s account in anyway possible.
Bits of Gold, an Israeli cryptocurrency company that specializes in buying and selling virtual assets sued the banks of Israel when every single one of them rejected his company a bank account.
This no doubt comes as a big blow to Leumi and the rest of the country’s banks as last December Leumi Bank decided to block payments to bitcoin exchanges right as cryptocurrency was at the height of its success. Leumi claimed that this was in line with orders that were made by the Bank of Israel.
It turned out that these orders weren’t meant for cryptocurrency at all, but were regulations put meant for the online gambling industry. The bank simply labeled numerous bitcoin exchanges as gambling websites. This gave the Leumi bank the right to block payments to the cryptocurrency exchanges.
Yuval Roash, the CEO of Bits of Gold had this to say regarding the Supreme Court’s decision. “The court’s decision enables us to continue to focus on the base of the crypto community in Israel. We were the first to request the creation of rules for the activity of digital currencies and the first to stand by those rules. We will continue to lead the industry, in order to give digital currencies their rightful place in the Israeli economy, as an incredible growth engine for the high tech and financial industries.”
In regards to the decision Judge Anat Baron had this to say, “This court order is not intended to harm the bank’s rights to analyze with specificity every transaction that takes place with the bank account or to take any actions that are related to minimizing risks, which become transparent through the activities of the company.”