Israel Bitcoin Association Files Judicial Petition against The Bank Of Israel

Olowo by Olowo - 05:56 AM Aug 21, 2019

The skeptical crypto attitude of the Israeli financial system has led to the filing of a judicial petition for the banks of this country to reveal their official policy towards cryptocurrencies.

Israeli institutions have maintained an ambivalent attitude towards cryptocurrencies. This is especially true when referring to the central bank of Israel, the Bank of Israel.

The Bank has not set a clear policy for other financial institutions or commercial banks regarding crypto assets.

According to existing legislation, commercial banks are required to inform the central bank reasons why a transaction is rejected. However, it is not obligated to share this information with the public.

This ambiguous rule is the center of attention after the Isreali Bitcoin Association requested the Bank of Isreal for information regarding the policy of commercial banks towards cryptocurrencies.

Isreal Bitcoin Association Wants Clarity Regarding Crypto Policy

However, the Bank of Isreal refused to give details about the policy leading to crypto activists filing a judicial petition that would force the institution to reveal their official policy towards crypto assets.

The Legal Advisor for the Isreali Bitcoin Association Jonathan Klinger revealed in a press release the reasons why the institution filed a judicial petition. According to him

“Under the Bank Law, it is a duty of banks to inform the Bank of Israel of the policy under which they refuse to carry out transactions.

We, therefore, contacted the Bank of Israel to request information, but the Bank of Israel did not want to disclose this policy to us.

For them, we have decided to fill out a petition before the court that forces the Bank of Israel to provide us with a copy of the policy sent to it by the banks »,

Under Current Regulations, Banks Can Refuse to Open Accounts Related To Cryptocurrency

One of the major reasons for this effort by crypto activists is due to the current policy used by commercial banks.

The Israel Bitcoin Association wants to know the official stance of the financial industry towards crypto assets to clarify such situations. The banking sector of the country has a skeptical attitude towards cryptocurrency.

There have been complaints in the past by crypto enthusiasts over the inability to open bank accounts related to cryptocurrencies.

This is not the first major lawsuit regarding crypto assets and financial institutions in Israel.

A cryptocurrency investor recently filed a lawsuit against Hapoalim Bank, accusing the bank of not accepting money that had its origins from crypto trading.

This issues in Isreal shows that traditional financial institutions are finding it difficult to accept that cryptocurrency has become a key aspect of the financial sector.

About The Author

OlowoI am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.


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