Bank Leumi Ordered Not To Block Cryptocurrency Transactions

The Supreme court of Israel took a decision in support of the cryptocurrency exchange, Bits of Gold by issuing a temporary injunction that forbids the Bank Leumi to stop the activity of the bank account of the local crypto exchange that marks a small victory for the crypto community.

In Israel bitcoin transactions affected early in Dec as Bank Leumi blocked “Bits of Gold” 

A few months earlier, in December, the second largest bank of Israel, Bank Leumi blocked the payments to Israel bitcoin exchanges. A number of users already have their payments stopped from the banks blocking bitcoin payments, where a user also notified the blocking of his credit payment to a bitcoin purchasing service called Coinmama. He attempted the payment through Leumi Card which is the credit branch of the Bank Leumi that claimed the action has been made in accordance with the order of the Bank of Israel.  

In response the Leumi Card said:

“We act in accordance with the provisions of the law and the company’s risk management policy.”

Another incident was a dispute between the Bank Leumi and the bitcoin exchange, Bits of Gold where Leumi denied service to the exchange. Despite the exchange following the KYC reporting procedures, the bank argued that with cryptocurrencies you can’t know who is the recipient of the transaction and that doesn’t comply with the anti-money laundering requirements.

Israel supreme court delivers the decision in favor of “Bits of  Gold” exchange

Israel is a country that is stocked with blockchain startups and even has an operational bitcoin ATM. Also, for quite some time, the Israel Securities Authorities has been evaluating the ICOs and this new industry as a whole. Just a week back, the authorities finally confirmed that the bitcoin among other cryptocurrencies will be taxed like properties.

Now, the Supreme court has overridden the Bank Leumi’s decision by passing a temporary order that allows the exchange to trade with digital coins until the court issues a ruling.

The decision certainly came as a victory for the cryptocurrency community. On court’s positive decision, the CEO of Bits of Gold, Yuval Roash said:

“The court’s decision allows us to focus on continuing to establish the Crypto community in Israel, and we will continue to lead the field in order to give digital coins the place. Which they deserve in the Israeli economy – as a tremendous growth engine for hi-tech and the financial industry.”

Though it’s only a temporary order and there is a possibility of the court changing its decision with further information, with the Israel government’s positive stance on cryptocurrencies, it is likely the decision would be in favor of crypto community.

What do you think of this small victory that Israel court has granted to the crypto community? Let us know your thoughts below!