Israeli Court Rules In Favour Of Bits Of Gold Crypto Exchange In A Financial Dispute With Bank Leumi
Israeli Court Rules In Favour Of Crypto Exchange In A Financial Dispute
- Over the course of the past 2-3 years, the Israeli legal system has upheld the rights of various crypto service providers to continue with their regular operations without being harassed by traditional banking players.
- Even though the SC has often voted to support the rights of local cryptocurrency exchanges within the region, banks like Leumi have often used questionable methods to restrict the tx capabilities of various crypto trading platforms.
As per a report released by a trusted crypto media outlet late yesterday afternoon, the Supreme Court of Israel has just passed a judgement that prohibits Leumi — a popular local banking institution — from blocking the activities of cryptocurrency exchange ‘Bits of Gold’.
However, despite the SC’s latest ruling, Leumi’s executive brass has continued to use a number of shady tactics to restrict the overall trade activities/capabilities of the popular crypto exchange.
Other Related Takeaways To Bear In Mind
- This is one of the first times where a top Israeli court authority has ruled in favor of the crypto sector — thereby setting a precedent for local altcoin service providers to legally use traditional banking services in order to facilitate their day-to-day activities.
- Back in 2017, the Supreme Court of Israel had “ruled in favor of Leumi” in regards to another case associated with ‘Bits of Gold’. At the time, the court had passed a law which restricted the bank from processing any BTC based tx’s since they did not comply with the country’s existing AML laws and standards.
- Last year, the SC issued a circular claiming that Leumi bank had “no right” to block transactions that were being initiated by various cryptocurrency exchange platforms located within the nation’s borders.
Over the course of the past 5 years, Bits of Gold has not been found guilty of any AML violations or other nefarious activities that could have resulted in the exchange getting banned by Leumi. However, that has not prevented the bank from penalizing the exchange on grounds associated with their dubious “risk management policy”.