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Israeli Supreme Court bars banks from restricting crypto activity in landmark decision

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Israel's Supreme Court issued a temporary order prohibiting Leumi Bank from restricting banking activity of the cryptographic broker Bits of Gold February 26

The decision of the Supreme Court, which was described as " setting a precedent ," means that banks in general can not limit Accounts Associated with the Crypto Industry

In June 2017, the Tel Aviv District Judiciary had supported the Leumi Bank when Bits of Gold had applied for a court order after it was over. to be denied service by Leumi. The bank had cited the impossibility for Bitcoin transactions (BTC) to follow Israel's anti-money laundering laws as the reason for the denial of service.

In December of last year, Leumi Bank also started to block customer payments to BTC. citing Israeli gambling law and Bank of Israel instructions as the cause of stopping such payments on " websites that perform gambling transactions ."

This time, the Globe reported that Yuval Roash, the CEO of Bits of Gold, said in a statement:

"The court's decision allows us to continue to focus on the crypto community base in Israel.We were the first to ask for the creation of rules for the activity of digital currencies and the first to abide by these rules. "

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The Judge Anat Baron, who ruled the case, said the decision to terminate the Bits of Gold account was based on the assumption that violations of the law would take place, the absence any violation in the last five years justifies the decision to undo these restrictions.

However, Baron adds that the court order is " is not intended to harm the bank's rights to accurately analyze every transaction that takes place with the bank account or take steps to minimize the risks, which become transparent through the activities of the company. . "

The law firm that represented Bits of Gold, Zioni Pillersdorf Philip, stated that they are:

"Very pleased with the courageous decision of the Supreme Court.It is a decision that sets a precedent the importance of which does not can be overestimated in relation to the digital currency trade. "

Israel has developed guidelines for the regulation of cryptocurrency in the country into pieces. The Israeli tax authority said last week that it would consider cryptocurrencies as a property in terms of taxes, and in August 2017, the panel of the Israeli Securities Authority announced that It could potentially start regulating the Initial Coin Offeringings (ICO)

. In December of last year, the Israeli government said it was planning to release its own national currency tied to the shekel in order to limit black market transactions.

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