Isreali Bitcoin Mining Firm Sues Bank For Accounts Closure

Isreali Bitcoin Mining Firm Sues Bank For Accounts Closure

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May 7, 2018 by Henrik Bliss
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Union Bank, the sixth largest bank in Isreal, has been slapped with a lawsuit by local cryptocurrency mining firm Israminers for closing its accounts. Israminers accuses the bank of unilaterally deciding that it will no longer let the business accept funds from Bitcoin exchanges after three months of operations. The bank will then return the

Union Bank, the sixth largest bank in Isreal, has been slapped with a lawsuit by local cryptocurrency mining firm Israminers for closing its accounts.

Israminers accuses the bank of unilaterally deciding that it will no longer let the business accept funds from Bitcoin exchanges after three months of operations. The bank will then return the funds that were already received in the account, preventing the company from purchasing mining hardware and closing the account within 30 days.

The owners of the mining firm, which includes a law firm owner, decided to bring the case to the courts, seeking for a reprieve from the decision of the bank. Moreover, the firm turned to the Israeli banking regulator with an official complaint against the Union Bank. The miners have announced that the Herzliya court has accepted the case, issuing a temporary order against the bank.

“Banks in Israel are currently refusing services to companies that operate in the crypto field, without even checking or understanding their business activity. The banks’ overwhelming refusal leaves us with no choice but to take our case to the courts of law, otherwise the entire Israeli crypto field will have to relocate its business model abroad,” Adv. Guy Penn told the press.

The banking system in Israel has not been welcoming to any Bitcoin-related business, forcing them to turn to the courts to get service. For instance, Acre-based cryptocurrency trading services provider Bitflash LTD requested the Tel Aviv District Court in February to order all 11 banks in the nation to open a current account without credit for it.

The Israeli Supreme Court issued a temporary injunction order later that month, prohibiting Bank Leumi from shutting down Bits of Gold’s account activity. It was a significant event in the Israeli digital currency industry, setting a precedent for other Bitcoin businesses struggling to get banking services.

 


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