Banks Are Prohibited to Restrict Cryptocurrency Activities: News from Israel

The Supreme Court of Israel has prohibited Leumi Bank from putting restrictions on the activity of cryptobroker Bits of Gold.

This decision is a precedent-setting one, as based on this, other cases about cryptocurrency and broker activities will be processed. It means, that banks cannot limit activities connected with cryptocurrency.

The story started in June 2017, when the district court in Tel-Aviv supported the mentioned bank when the broker has raised a claim about limits imposed by the bank. Though on the 26th of February, the Supreme Court decision was announced. This time, it was favourable to Bits of Gold.

The broker administration tells they were the first who have requested the creation of some regulation for cryptocurrency in the country, as well, they believe, this decision will open a door to cryptocurrency in the country.
The judge who has taken the decision, explains it in the following way: the limitations are imposed due to the suspicion that violations may take place. Though, there are no violations in the actions of the broker, hence, there is no reason to impose any limitations.

 

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