Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The Supreme Court of Israel says Leumi Bank cannot block Bits of Goldâs account due to regulatory concerns, setting precedent for other crypto organizations.
The Supreme Court of Israel has declared that Leumi Bank cannot block the cryptocurrency exchange Bits of Goldâs account on the grounds of regulatory concerns, according to a report by Finance Magnates on June 3.
Despite the Supreme Courtâs ruling against Leumi, the bank reportedly maintains its stance against dealing with the exchange. The report notes, however, that this ruling sets precedent for Israeli cryptocurrency firms to legally use traditional banking services in the region.
In 2017, the Israeli Supreme Court previously ruled in favor of Leumi in a separate case against Bits of Gold, in which the bank restricted the exchangeâs account on the grounds that bitcoin (BTC) transactions could not comply with the countryâs anti-money laundering (AML) laws.
In 2018, however, the Israeli Supreme Court ruled that Leumi Bank could not block account transactions on the grounds that they went to BTC exchanges, purportedly âwebsites that execute gambling transactions.â Further, Judge Anat Baron issued a court order temporarily barring Leumi from blocking Bits of Goldâs bank account.
Judge Baron commented that since there was no indication of any AML violations over five years of exchange transactions, there are not any grounds to continue blocking Bits of Goldâs account. Baron noted, however, that the decision to issue the court order did not prevent the bank from scrutinizing the exchangeâs behavior or complying with their risk management policy.
In March 2019, the Israeli Securities Authority issued its final recommendations for cryptocurrency regulations. The report includes several ideas for how to support the cryptocurrency space in the country, including the establishment of a regulatory sandbox.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.