Judge Limor Bibi of the Tel-Aviv District Court has reportedly ruled that the Union Bank of Israel was not right to close the account of Israminer, a local cryptocurrency mining company.
According to a local news agency, Calcalist, the court ruling blamed the Bank for adopting a “sweeping” policy that restricted it from providing service to customers who use virtual currencies and labeled it as “unreasonable.”
In announcing the decision, the report quotes the Judge as saying,
“I believe that the sweeping policy, which does not distinguish between different types of activity, the scope of activity and different types of customers — in the field of digital currencies — is unreasonable.”
Conversely, the Judge mentioned that Union Bank reserved the right to decide not to accept deposits from the company since according to their statement there was no way to catch the money trail, that is, a means to find out whether the funds from Israminer was linked with “money laundering.”
Israminer Vs. Union Bank Israel
As per the report, Union Bank claimed that it secured approval from the Bank of Israel policy to implement a policy that stop it from providing service to cryptocurrency related businesses since they could be prone to money-laundering.
Israminer, on the other hand, cites that the Central Bank’s policy does not prohibit commercial banks from providing serving individuals or companies dealing in cryptocurrency (at least not yet)
The latest court decision no doubt draws a line that there is a disparity between the policy Union Bank is implementing and what the apex Bank stipulates for the crypto industry. Hopefully, the country’s regulators will bridge the gap by perhaps making a statement that clarifies whether o not banks should provide service to the crypto industry.
In a similar development last week, we reported that Brazilian crypto exchange, Mercado Bitcoin won a court case against Santander Bank for closing their account last year.
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