04 June 2019 15:15, UTC

The Israeli Supreme Court ruled that Leumi Bank cannot block the account of the Bits of Gold cryptocurrency exchange based on regulatory concerns, Finance Magnates reports.

In 2017, the Israeli Supreme Court ruled in favor of Leumi in a separate case against Bits of Gold, when the bank restricted the account on the grounds that Bitcoin transactions (BTC) did not meet the requirements of the country's legislation on money laundering (AML).

Nevertheless,in 2018, the court ruled that Leumi Bank can not block transactions on the accounts of the exchanges. Judgeissued a decree temporarily prohibiting Leumi from blocking the Bits of Gold bank account and commented that for five years of the exchange’s activity there were no violations in the AML sphere and thus there are no reasons to continue blocking the account of Bits of Gold.

Despite the current decision of the Supreme Court, the bank maintains its position and opposes the deal with the exchange. The report notes that the ruling is a precedent for Israeli crypto companies: in fact, it is an opportunity to use traditional banking services on legal grounds. It is worth noting that in March 2019, the Israeli Securities Authority issued recommendations for the regulation of cryptocurrencies.

Image courtesy of Finance Magnates

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