Israeli Court Criticizes Bank’s Decision To Shut Down Bitcoin Mining Firm’s Account

Calcalist, a local daily business news outlet of Israel, has stated that a court in the country has passed a judgment in favor of Bitcoin (BTC) mining company and against a domestic bank which resorted to withdrawal of services on money laundering worries.

Israelis, who filed a case against Bank Igud (Union Bank of Israel Ltd.) in May 2018, encountered cash flow issues due to bank-blocking deposits that they claimed were contrary to their terms. Following a detailed plea measures, a judge of the district court in Tel Aviv contended that the policy of the bank on digital currency customers was too diverse and must not involve automatic dismissals.

Calcalist has mentioned judge Limor Bibi to be saying as “I believe that the sweeping policy, which does not distinguish between different types of activity, scope of activity and different types of customers — in the field of digital currencies — is unreasonable.”

However, concurrently, Bibi opined banks had the right to decline large deposits from cryptocurrency related transactions. The saga keeps going due the legislative patchwork mentality towards cryptocurrency trading as it affects the heritage banking system. In the past, several banks have been challenged by service companies and private investors trading cryptocurrencies.

In the case of Union Bank, senior executives would appear to have benefited from education in the emerging sector, with local startup Bit2C holding a workshop last November on their work. Likewise, Union Bank senior executives appeared to have profited from education in the evolving industry, with domestic tech company Bit2C holding a workshop last November on their work.

A devoted committee from Israel’s regulatory body laid down final suggestions for overseeing the cryptocurrency economy earlier this month, something that might see the handling by banks becoming more standardized in the future.

The supplementary report elaborated as follows:

“The committee recommends considering adjustment of the existing regulation to create more suitable regulatory infrastructure for this trading activity in order to better cope with the risks incurred in this activity.”