The Israeli Supreme Court reached a decision today in the crypto space, requiring banks to allow trading, and prohibiting them from limiting the bank accounts of companies associated with the industry.
The court issued a temporary court order to prohibit Israel’s Leumi Bank from limiting in any capacity the bank account of Israeli crypto company Bits of Gold, which acts as a broker (exchange) in facilitating the buying and selling of digital assets.
Leumi Bank made a decision in December of last year that was heavily scrutinized by crypto enthusiasts. The bank decided to block payments to Bitcoin exchanges in the midst of surging demand for the digital asset. Bank Leumi had claimed that the decision was in line with an order issued by the Bank of Israel.
However, it appears that the order was actually part of regulatory confinements put in place for the online gambling industry – the bank had classified various Bitcoin exchanges as gambling sites, thereby allowing it to block such payments to the exchanges.
Judge Anat Baron commented on the court’s decision: “This court order is not intended to harm the bank’s rights to analyze with specificity every transaction that takes place with the bank account or to take any actions that are related to minimizing risks, which become transparent through the activities of the company.”
Source: Finance Magnates
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