Israel-Crypto

Bitcoin mining firm in Israel won court against the bank that shut it down

Law and Regulation

According to the Israeli daily business news outlet, an Israeli court has ruled in favor of the Bitcoin mining company which was closed by the local bank due to money laundering concerns.

The process started in May 2018 when the mining company “Israminers” sued the Union Bank of Israeli Ltd, Bank Igud. The mining company had faced problems with cash flow since the bank considered that the deposits made on the firm’s account were against the terms and started blocking them.

The appeals process has been ongoing since May and finally, a Tel Aviv district court judge ruled in favor of Israminers. The judge stated that the bank’s policy on cryptocurrency clients was too broad and that it should not include automatic rejections. However, the comments that were made by the judge Limor Bibi were at some point contradictory. The judge stated that the sweeping policy is unreasonable in the field of digital currencies if it does not distinguish between different types of activity, different types of customers and the scope of their activity. However, at the same time, the judge stated that the banks have the rights to refuse deposits originated from cryptocurrency traders.

Banks & Cryptos don’t get along

The tense relationship between the banks, regulators and cryptocurrency industry is not a new thing. Various banks all around the world have taken some kind of issues with servicing businesses that deal with cryptocurrencies and the traders who trade with digital assets.

For example, the United Kingdom-based Barclays shut down accounts before developing a relationship with one of the biggest cryptocurrency exchanges, Coinbase, to speed up deposits and withdrawals.

Just make them legal alraedy

Until the local regulators come up with some kind of legal framework for cryptocurrencies, we will still be hearing about cases like this. For now leading countries such as the United Kingdom, The United States of America, Japan and now Australia are thinking about the regulatory framework that will ensure the development of the innovative technologies, and at the same time ensure the safety of investors’ funds.

Israel is also trying to find the best option to deal with cryptocurrencies. Earlier in March, the country’s securities regulator issued the final recommendations for governing the crypto economy. According to the report the committee recommends adjustments in the existing regulations to create the suitable regulatory infrastructure to cope with the risks that come with cryptocurrency trading.

Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.