Will Israel's Courts Side with Crypto Fans Again or the Banks?
As reported previously by Israeli publication Globes, banks in Israel are causing increasing trouble for Israeli cryptocurrency enthusiasts. Many Israeli crypto traders and holders have reported difficulty in opening accounts, depositing funds or managing their account. This has caused massive difficulties in the lives of crypto enthusiasts.
These difficulties have not only affected individuals, but also companies that deal with cryptocurrencies in one way or another. It has also affected the Israeli Bitcoin Association's ability to open a local bank account.
The Court Battle
Despite these difficulties, it appears that the Israeli crypto-community has not given up hope. In a defiant move, they have taken up legal action against the banks. Due to this, The Bank of Israel (Israel's national bank) and public banks will be required to define clear public policy regarding cryptocurrencies.
The head of the Israeli Bitcoin Association, Meni Rosenfeld has spearheaded this effort.
Initially the Bank of Israel has denied the Israeli Bitcoin Association's request. Their claim was that requiring local banks to publish a document regarding their stand on cryptocurrencies violates "trade secrets".
This initial denial did not deter the Israeli Bitcoin association who proceeded with their legal case.
It is important to note that previous legal actions in Israel against banks have been successful.
Major legal triumph at Israeli Supreme Court today for @BitsofGold_LTD, Israel’s largest Bitcoin changer, as prominent commercial bank concedes its attempts to halt banking services for the company 🎉— Udi Wertheimer (@udiWertheimer) June 3, 2019
While the court battle still rages on, it appears that the Israeli Bitcoin Association might win the case. A likely outcome would be that the Bank of Israel would be required to provide a clarification on cryptocurrencies. This would be followed by all public banks providing clarification regarding their requirements and limitations.
We will provide further updates as the story unfolds.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado