Cryptocurrency firms are fighting to get access to banking services in Israel. And the Attorney General of Israel seemed to be supporting the cryptocurrency firms in this case while speaking in the Tel Aviv District Court.
According to the report of Globes on Wednesday, the Israeli Attorney General Dr. Abihai Mandelblit stated in the court that the banks in Israel cannot ban their banking services to the cryptocurrency firms. He said that before banning their banking services to the crypto companies, they should critically examine and monitor every single case and find out whether there is a money laundering case or not.
According to the report, the remarks of the Attorney General totally stand in contrast with the views of the Bank of Israel and its instruction to all Israeli banks. Following these instructions and guidance, Israeli banks have been denying to offering their banking services to crypto firms. These banks even refused to provide basic services as well.
Also read:However, Dr. Abihai Mandelblit said that if the court supports his view and that crypto firms get banking services then it is possible to bring stability in the cryptocurrency industry.
Recommendations of government agencies
The report claims that this issue was raised during the hearing of Mercantile Discount Bank’s dispute with BIT2C. This bank stopped and denied to process a payment from a BIT2C account to an account holder because the bank said that this account was found to be involved in Bitcoin trading.
Various state agencies were supporting Dr. Abihai Mandelblit in this case. According to the report, the position or view of the Attorney General was based on the recommendations made by government agencies working under the leadership of Adv. Erez Kaminitz.
The hostility of banks towards the cryptocurrency sector
It is not only the banks of Israel that have been refusing to offer their banking services to crypto firms but the banks from the whole world are showing hostility towards the cryptocurrency sector.
The reason behind being hostile towards crypto companies is money laundering and terror financing which are associated with the cryptocurrency sector.
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