The Supreme Court of Israel released a temporary injunction order forbidding Bank Leumi from sweepingly halting the account activity of the Bits of Gold bitcoin exchange. This is reported by News Bitcoin Com.
The court’s decision enables us to focus on continuing to establish the crypto community in Israel, and we will continue to lead the field in order to give digital coins the place which they deserve in the Israeli economy – as a tremendous growth engine for hi-tech and the financial industry.
CEO, Bits of Gold
This decision is temporary, which will be effective for the period of consideration of the case in the appellate instance. Bits of Gold is a client of Leumi Bank since 2014, but in 2015 the bank decided to stop the account maintenance despite the absence of violations by the company. The bank called the reason for its decision the increased risks associated with operations with crypto-currencies.
The bank respects the decion of the court. However, as long as the matter is not regulated by orderly regulatory directives, the bank’s exposure to the client’s activity in bitcoin will be valid – and not only towards the regulators in Israel who are obligated to respect the decisions of the Supreme Court, but also towards foreign regulators who do not consider themselves bound by the decisions of Israeli law. Therefore, as long as no binding legal provisions are determined by the regulator and the relevant parties, the bank will continue to manage the case until the temporary injunction is removed.
This is a big victory for the Israeli cryptocurrency community and a precedent-setting event.