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Cryptocurrency Exchange Emerged Victorious in Israeli Supreme Court Ruling

By Luke Flowers – Cryptocurrency Broker

On June 3rd, according to a report by Finance Magnates, the Israel Supreme Court ruled in favour of cryptocurrency exchange Bits of Gold appeal as their account with Bank Leumi cannot be blocked due to concerns of regulation. The exchange should be able to provide services to buy and sell cryptocurrency yet despite the ruling, the Leumi bank still stands against Bits of Gold.

It’s also reported that this enables Israeli cryptocurrency firms to use conventional banking legally in the region to provide services for buying and selling Bitcoin. Previously in 2017 however, the Supreme Court in a separate case by Leumi, ruled against Bits of Gold on the accounts that Bitcoin transactions couldn’t adhere to the state’s laws of anti-money laundering (AML).

Later in 2018, the Israeli Supreme Court ruled against Leumi in which it couldn’t block account transactions due to them going to BTC exchanges. The bank then classified cryptocurrency firms as gambling companies and ceased business with them making it difficult for these to continue to provide services to buy and sell Bitcoin. Apart from that, Judge Anat Baron temporarily issued a court order that prevents Leumi from blocking Bits of Gold’s bank account.

Judge Baron later said that since there wasn’t any indication of AML violations involving exchange transactions over the last five years, there were no more grounds to block Bits of Gold’s account. Baron did note, however, that despite the court’s order, it didn’t prevent the bank from criticizing the behavior of the exchange or even adhering to their risk management policy.

Then in March 2019, the final recommendations for cryptocurrency regulations were issued by the Israeli Securities Authority. This provides greater insight and guidance on regulating these firms.

Check out our platform if you are looking to buy cryptocurrency UK and start your Bitcoin investment from a trusted cryptocurrency broker.

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