Israel’s Supreme court banned the Bank Leumi to terminate the service accounts of the local cryptocurrency exchange Bits of Gold. This is seen as a major victory in the Israeli cryptocurrency industry, which will create a precedent for other cryptocurrency companies.
Since its inception in 2014 Bits of Gold worked with Bank Leumi, the second largest financial institution of the country, and in 2015 received a denial of service due to the fact that trades in bitcoins.
Bits of Gold has addressed this issue in the district court, which upheld the position of the Bank. The company then appealed this decision to the Supreme court of Israel, which immediately issued Bank designed a temporary injunction and ruled that the company can trade cryptocurrency.
«The losses that the Bank may incur, speculative look. The Bank’s decision is based on the assumption that the activities of the company does carry risks, in violation of the provisions of the act, and the Bank will have to pay for the materialization of these risks. However, until now, already more than five years, during which accounts were used, these fears did not materialize. The district court found that the company’s activities transparent, and it does not violate the law» – follows from the decision of the Supreme court.
According to the head of Bits of Gold of Roash Yuval (Yuval Roash), the court’s decision will allow the company to focus on continuing to create the cryptocurrency community in Israel, because digital money is the engine of growth for high technology and financial industry.
Bank Leumi said that he respects the court’s decision, however, as long as the country does not have clear regulation of cryptocurrencies, the Bank will continue its policy, despite a temporary ban.