According to Israeli Attorney General Avichai Mandelblit, Israeli banks should not deny services to companies dealing with crypto currency.
Instead of withholding financial services for all crypto companies, banks should carefully examine each case for risk indicators of money laundering or other illegal financial practices, Mandelblit informed Tel Aviv District Court.
Mandelblit's position - an account by the Israeli news agency Globes of 19 February. - It contradicts the view of the central bank of this country, the Bank of Israel.
In 2019, several Israeli banks froze the accounts of clients receiving crypto transfers from the bank. This action meant that some Israeli investors Bitcoin (BTC) were unable to pay taxes because the banks did not accept their deposits.
In August 2019, the investor sued the Israeli Bank Hapoalim for almost $23 million, accusing it of refusing to accept deposits from profits made through Bitcoin.
It is a similar story in other parts of the world. The Internet and the Mobile Association of India are currently struggling with prohibitions of the country's central bank concerning the provision of financial services to crypto companies.
Mandelblit's position has been filed in a case concerning Mercantile Discount Bank's refusal to authorize a transfer from the local crypto BIT2C exchange. According to Globes, the AG's position was based on the recommendations of an inter-ministerial team led by Erez Kaminitz, Deputy Attorney General of the Department of Civil Law.
