The order to bar Leumi Bank from terminating its services to the Bits of Gold exchange, which is seen as a big win for the Israeli cryptocurrency industry, will also be welcome news for other cryptocurrency-based businesses struggling to acquire banking services in the country.
Since it was started in 2014, Bits of Gold, licensed as a currency exchange in Israel, has had an account with one of the largest banks in Israel, Leumi. The legal battle started in 2015 after the bank decided to close the exchange’s bank account, merely because the company deals in bitcoin. Bits of Gold took the matter to the courts, requesting that they issue an order for a stay of its account. An injunction was issued by the District court, allowing the company to operate its account until the case was determined and a verdict given. Despite praising the company, the District Court gave the bank permission to restrict Bits of Gold in its Bitcoin trade. The matter was taken to the Israeli Supreme Court, which issued a temporary order on Monday, allowing Bits of Gold to trade in digital coins until a ruling is given. “It appears that the damages that the bank might incur are mere speculations for now,” read part of the Supreme Court’s order.
A Precedent Is Set
The company’s lawyer hailed the Supreme Court’s decision as a major win for the crypto industry in Israel.
This is a precedent-setting decision whose importance cannot be overemphasized in relation to the trading of digital currencies,
-Said lawyer Shaul Zioni of the legal firm who represented the company, in a statement to Bitcoin News. “The court says banks actually cannot ban the company’s activities sweepingly and that they should manage their risk,” the statement continued.
Meanwhile, in a statement to newsroom, Bits of Gold CEO Yuval Roash said,
The court’s decision enables us to focus on continuing to establish the crypto community in Israel.
However, the bank responded to the development through its CEO, stating that it will respect the court’s decision but maintaining that it was still exposed to immense risks.
Image Credit: Deposit Photos
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