Israeli Supreme Court Rules Banks Should Not Restrict Crypto Trading

Leumi Bank ordered to unblock crypto exchange Bits of Gold’s accounts.

by Viko
26 February • 1.5
In Regulation
Israel’s Supreme Court ruled on Monday that local lenders should not impose restrictions on the bank accounts of companies operating in the cryptocurrency sector and hence not constrain digital coins trading, Finance Magnates reported.

The move came after Israeli cryptocurrency exchange Bits of Gold complained that Leumi Bank, the country’s second-biggest lender, decided in December to stop servicing its accounts.

leumi-bank-1The court’s temporary order now states that Leumi cannot limit in any capacity Bits of Gold’s bank account. According to specialists, the decision could eventually lead to fully adopting crypto trade by all financial institutions in the country. However, sceptics warn that the order is temporary and could be reversed, while banks still could impose restrictions on the accounts of private individuals.

Bank of Israel logo

Back in December, Leumi claimed its decision was made because of an order, issued by Israel’s central bank. However, it turned out that this order was related to the online gambling industry and not to the crypto sphere.
But Leumi treated the crypto exchange as an online gambling business, enforcing the account blocking, which was eventually ruled out by the Supreme Court.

According to Bits of Gold CEO, Youval Rouach, the ruling enables the company to continue to support Israel’s crypto community and virtual currencies, which he believes are “an incredible growth engine for the high tech and financial industries”.