Crypto Businesses Should Receive the Normal Services Offerings From Banks, Israeli General Attorney Claimed

By Mary T. | February 20, 2020

Israel-based banks should not entirely cease to offer services for crypto-related establishments, as claimed by Israel’s attorney general Avichai Mandelblit.

Specifially, in Mandelblit’s idea, banks should apply a more thorough examination process for each case, to identify signs of money laundering risks or other illicit financial activities, instead of the current shutdown in offering their financial services. 

Mandelblit’s idea regarding the matter contradicted with the stance from the central bank of Israel, as reported by the Globes on February 19th. 

In 2019, a few banks in Israel have decided to block account access to whichever of their business partners that receive crypto-enabled transfers. This led to the result of numerous Bitcoin (BTC) investors in Israel stripped off the option to fulfill their tax duties, since the banks refused to take in their deposits. 

In August 2019, a $23 million lawsuit happened between an investor and Israeli Bank Hapoalim, claiming the bank would not accept deposits of Bitcoin-based profits. 

The case where Mercantile Discount Bank has denied authorization for a transfer from local crypto exchange firm BIT2C is the primary reason that led to the stance from Mandelblit. 

The Israeli authorities, however, are making steps to further blockchain growth in the nation, despite the attitude from local banks. an information request has been made by the Israeli Securities Authority, to look into regulations that are acting as barriers against the growth of blockchain-based businesses in Israel.

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