Regulations

Court ruling: Israeli bank can reject deposits from crypto transactions

According to a new court ruling, Igud Bank, an Israeli bank can reject deposits from crypto transactions if they decide to.

This is after Israminers, a cryptocurrency mining company appealed to court following a refusal by Israel’s Union Bank(Igud Bank) to grant their business a bank account.

The cryptocurrency company was denied a bank account last year, a decision the company believes is outside their terms of service of the bank.

As reported by Calcalistech, a Tel Aviv District Court ruled on Sunday that Igud Bank, the Israeli bank can reject deposits from crypto transactions including the opening of cryptocurrency related bank accounts.

According to the Judge, the bank’s reason for not wiling to involve in cryptocurrency related transactions is justifiable giving their fear of money laundering.

However, she thinks the bank’s policy which prohibits the creation of bank accounts for companies involved in cryptocurrencies is too broad and therefore called on the bank to distinguish between the various cryptocurrency activities that fall under such prohibition.

This is not the first time banks are rejecting cryptocurrency deposits and also shutting down cryptocurrency related bank accounts.

Last year, the Supreme Court of the country ruled in favor of Bits of Gold, another cryptocurrency company based in the country after its bank account was also restricted by another top bank of the country.

Of recent, JP Morgan also closed the bank account of a cryptocurrency start-up without giving any official reason. The start-up which focuses on the tokenization of social media platforms was shocked to know the bank was ending their relationship with the company.

Similar restrictions have also taken place across Europe with banks either freezing funds or shutting down banks accounts of cryptocurrency investors.

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