Bitflash LTD was created in January. It was established to provide cryptocurrency trading services based in Acre. On Sunday, the company asked the Tel Aviv District Court to order all 11 banks in the country to open a bank account without credit for it. Bitflash believes that this refusal is in violation of the law and shows lack of good faith, as some of them manage similar accounts for competing companies.
According to the lawsuit, there is a concern that the banks have illegally incorporated as a cartel and unjustifiably prevent the opening of the account to the plaintiff.
However, the court ruled last year that a bank can refuse to work with a bitcoin exchange in the case of Bits of Gold vs. Leumi.
Since the company’s establishment, it approached a number of branches of each Israeli bank for the purpose of opening an account. But it received only refusals on the grounds that its business in cryptocurrencies is not to the liking of branch managers.
Through the company’s attorney Alon Huberman it emphasized to the representatives of the banks that it has no need for credit, it needs only a current account that will allow the transfer of money from its clients inside Israel to its account.
Without a bank account, an Israeli exchange would not be able to legally receive fiat transfers from clients, effectively preventing it from starting operations.