Tel Aviv Court Rules: Banks Are Not Permitted to Shut Crypto Miner’s Account


Tel Aviv Rules: An Israeli court has ruled once against a local bank that tried to close the account of a business related to Cryptocurrency without any justified reason. This time, the court has determined that a bank cannot refuse to operate an account on the behalf of a crypto miner.

The Union Bank of Israel limited (TASE: UNON), the sixth largest Israeli Bank will not be permitted to shut down the account of the local Cryptocurrency  mining company, Israminers LTD. Tel Aviv. The District Judge of the Court, Limor Bibi has ruled it for the banks that the banks’ sweeping policy that prohibited the crypto mining users having account in the bank is very much unjustified. But the banks can still refuse to deposit the fiat monet coming from the anonymous exchanges in order to comply with the two major banking systems, Anti Money Laundering (AML) and Know Your Customer (KYC).

According to the Judge’s rule, she believed that the sweeping policy does not distinguish between the various types of activities, scope of activity and diverse type of customers in the field of digital currencies are pretty unreasonable. She also added to this that in these types of circumstances, the bank’s argument related to the source of the money is justified as these can give rise to money laundering. Therefore the bank’s refusal to the receipt of the money and depositing in the respective accounts is reasonable.

The Israeli Banking system was asked not to block accounts of the users engaged in the Cryptocurrency businesses without providing any justified reasons. It was also seen that in May 2018, the same Judge Court forced the Israel’s largest bank, Bank Hapoalim to accept a funds transfer that resulted from the sale of Bitcoin to a client who possessed all the documents of the transaction from the very beginning.


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