Israel's Supreme Court forbids the bank to close the account of the country's largest Bitcoin-service

The Israeli Supreme Court issued a provisional order banning the Bank of Leumi to radically terminate the activities of the Bits of Gold stock exchange. This is seen as a major victory in the Israeli crypto currency industry, which will set a precedent for other companies that are trying to get bank support.

The Israeli Supreme Court prohibits the bank from refusing to service the Bitcoin-Exchange Bits of Gold. Since its inception in 2014, the service has been licensed as a currency exchange. Since its inception, the service has maintained its account with Bank Leumi, one of the two leading banks in the country. In 2015, the bank decided to close the account, despite the company's thorough conduct – only because the company is engaged in Bitcoin, and then Bits of Gold decided to apply to the court for permission to continue using the account.

For several years, the service worked with a prescription that allowed him to act until the final verdict. A few months ago, a district court banned the bank from closing the account.

The company appealed this decision to the Supreme Court of Israel, which immediately issued a temporary injunction and on Monday adopted a temporary order under which the exchange can trade in digital currency and use its bank account until the decision is finally rendered.

The Supreme Court wrote: "It seems that the damage that the bank can incur is now just speculation. The decision of the bank is based on the assumption that the company's activities are indeed borne by the risks that arise as a result of violation of the provisions of the law. That is why the bank is afraid that it will be necessary to compensate losses in case of materialization of these risks. However, until now, for more than five years the bank account, these fears have not materialized. The District Court ruled that the company acted transparently and did not violate any statutory provisions. "

Yuval Rouache, CEO of Bits of Gold, said: "The court decision allows us to focus on expanding the crypto-currency community in Israel, and we will continue to lead this area to give digital currencies the place they deserve in the Israeli economy – as a huge push for the latest technology and the financial industry."

Author: Olga Novikova, Analyst Freedman Club Crypto News
Image from Fotolia

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