Israel court rules banks cannot put blanket ban on Bitcoin mining accounts but can reject depositslinked to criminal activity News
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Israel court rules banks cannot put blanket ban on Bitcoin mining accounts but can reject depositslinked to criminal activity

An Israeli court ruled Sunday against a local bank that attempted to close accounts linked to Bitcoin over money laundering concerns.

Judge Limor Bibi of the Tel Aviv District Court found the bank’s argument against depositing funds it suspected to be tied to criminal activity sound but rejected the bank’s request to close the account and ban the opening of new accounts on the basis of their association with cryptocurrency. “I believe that the sweeping policy, which does not distinguish between different types of activity, scope of activity and different types of customers—in the field of digital currencies—is unreasonable,” Bibi stated.

This decision continues a long line of attempts to regulate the banking system in connection with a constantly-evolving cryptocurrency system. Earlier this month, a committee from Israel’s securities regulator issued recommendations for governing the cryptocurrency economy, which could smooth the kinks currently plaguing its interactions with banks in the future.

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