Israminers Crypto Mining Firm sues against account closure by Israeli Bank
Union Bank of Israel shuts down acceptance of funds from bitcoin exchanges to bank account of Israminers
Ignoring the earlier decision in February 2018 by the Israeli Supreme Court, the court received a new case filed against an identical scenario of account closure relating to Bitcoin exchanges. The Union Bank of Israel has shut down acceptance of funds from bitcoin exchanges to Israminers’ bank account and has returned funds back to senders. A legal bank account is necessary for any firm to legally operate within the country.
Israminers against the Union Bank
Shutting down of the account by Union Bank of Israel Ltd (TLV: UNON), ranked sixth in the Israeli banking list, has resulted in the inability to receive funding for the Israminers bitcoin mining firm. The mining firm sues the bank complaining the bank deciding itself to stop the flow of funds to their accounts and closing the account within 30 days. The company is now unable to purchase new mining hardware which is a major drawback for the business.
One of the founders of Israminers is also a law firm owner, who decided to take the case to the Israeli court. Additionally, an official complaint to the financial regulator was lodged against the Union Bank. Today, on 6th May, the Herzliya court has taken in the case and released a temporary order against the Union bank.
Adv. Guy Penn stated the following;
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.
Earlier court order by Israeli Supreme Court
In the past banking systems in Israel has not been friendly with bitcoin-related businesses. This leads to firms looking for the support of the court to get these services from the banks. The Acre-based crypto trade services provider Bitflash LTD, requested Tel Aviv District Court to enforce an order for all 11 major banks in Israel to allow opening of a current account without credit for it.
In February 2018 the Israeli Supreme Court made a temporary injunction order forbidding local bank Leumi from stopping account activity on Bits of Gold bitcoin exchange. The ruling was an evident victory in the digital currency industry in Israel, and which shows Israminers have hope to get back a favorable ruling in the latest case against the local banking services.
On 4th May 2018, the case filed by Bitmynt Norwegian crypto exchange founder Sturle Sunde against closing their cryptocurrency exchange account claiming anti-money laundering concerns, got over-ruled by the court.