Home Business Central Banking Banks should continue offering crypto services, Israeli Attorney General says

Banks should continue offering crypto services, Israeli Attorney General says

In spite of proposals by the Central Bank of Israeli, the Attorney General, Dr. Avichai Mandelblit, has said that banks in the country should continue offering banking services to crypto-related clients and companies.

According to the Central Bank’s argument, because of the anonymity of Bitcoin, they can be used to promote fraud and money laundering.

They advised banks to use crucial regulations to fight these acts, but banks afterward became unfriendly to the Israeli crypto industry.

They went as far as freezing accounts of customers trading with digital currencies and also dismissing deposits from them. This led to numerous lawsuits in 2019.

Banks should make mindful decisions

According to Mandelblit, banks and other monetary organizations should not jump into conclusion that all crypto-related businesses deal with money laundering.

She added that Banks should investigate each case before agreeing if they would give services to the crypto customers.

Mandelblit’s viewpoint was ascertained in the case of Jaguar-Gal represented against Mercantile Discount Bank, a major commercial bank in Israeli, for declining to approve a transfer made by BIT2C, the well-known cryptocurrency exchange.

New age in the Israeli crypto Bank-ability

Local media is saying that Mandelblit’s opinion is in disagreement to the central bank’s guidelines that are approving the banks’ refusal to serving crypto holders.

Lawyer who oversaw the case, Jaguar-Adva Gal, noted that Israeli courts had no idea about crypto, blockchain and Bitcoin, but this case will shed more light on them.

She added that in the course of the case, she had no choice than to lecture the court on everything related to Bitcoin, blockchain and transfers.

She mentioned to them the option of monitoring transactions for users who are not in anyway related to money laundering.

JAG thinks that this step is the beginning of a new era in the Israeli crypto bank-ability and legal acceptance in terms of adoption.

She appreciates the clever Israeli regulators for their braveness, unlike their global colleagues who are scared to oppose other countries’ central banks’ directives.

“Israeli law expects banks to offer clients service as a default regulation except risks related with terror financing, or tax avoidance.

“This is not the situation in other countries where laws are more capitalistic, allowing banks more independence to prevent risks.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...

Federal Reserve should produce a digital dollar, Giancarlo says

Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC) has said that the Federal Reserve should generate digital currency.

Coinbase suspends EOS activities due to degraded performance

Owing to Coinbase degraded performance experienced with EOS, the digital currency exchange firm announced via Twitter on Saturday that...