Attorney General of Israel, Avichai Mandelblit, recently stated his disapproval of Israeli banks denying their services to firms associated with cryptocurrency. Instead, he advised close examination for every case to detect cases of money laundering or other financial malfunctions, as reported by the Tel Aviv District Court.
Mandelblit’s case has garnered support from certain state agencies. The case involved Mercantile Discount Bank’s refusal to authorize the transfer of funds from BITC2C, a local cryptocurrency exchange service.
The support of the state agencies comes on the recommendations by an inter-ministerial team led by Erez Kaminitz, the deputy attorney general at the Civil Law Department. The team also includes representatives from various departments including the Israel Money Laundering and Terror Financing Prohibition Authority, Ministry of Justice, the Israel Capital Markets, Insurance, and Savings Authority, and others.
A Volatile State of Events for Cryptocurrency
Mandelblit’s views and opinions are in direct opposition with the Bank of Israel, the central bank of Israel. The year 2019 saw countries adopting a firm stand against cryptocurrency. Israel on a surprising move froze certain accounts of cryptocurrency users on the transfer of funds. This action led certain Israeli Bitcoin (BTC) investors to not pay their taxes on time.
The August of 2019 saw Israeli Bank Hapoalim get sued for over $23 million by an investor on charges of refusing the acceptance of deposit of profits made by Bitcoin trading.
In India, the Internet and Mobile Association is currently in court against the ruling by the central bank of the country banning the provision of financial assets to crypto businesses.
Israel Government’s Welcoming Approach
The Government of Israel, on the other hand, has approached a rather accommodating affirmation towards blockchain and cryptocurrency. Just last month, the Israeli Securities Authority filed a request for information for the identification of regulations preventing the development and expenditure of blockchain-based enterprises in the nation.