Firms within the crypto industry face a number of challenges across the growth which can hinder their growth. One of these is the denial of banking services for crypto-related companies. This has been seen in countries such as Israel and India and the law in India that prevented banking services being given to crypto files practically crippled the industry in that region. Some of the reasons why these laws are put in place are concerns about cryptocurrency firms engaging in money laundering and many parts of the world choose to issue blanket bans on the industry and this is an ongoing issue.
There is some good news on the horizon, however, as the attorney general of Israel recently stated that banks are not to deny crypto firms their services any longer.
No Longer Denied
Israel’s attorney general Avichai Mandelblit made this declaration of the District Court of Tel Aviv and stated that rather than deny or crypto firms banking services, each firm should be looked at on a case-by-case basis and any signs of money laundering and illicit activities should be reported to the authorities.
This is contrary to the instructions that have been given by the central bank of Israel since 2019. In that year, a number of individuals had their bank accounts frozen because they received deposits that were derived from cryptocurrency and many bitcoin investors found themselves unable to pay tax. A man even sued a bank for $23 million for the refusal of his deposit for this purpose.
This statement was brought on by the current case between Mercantile Discount Bank and a local crypto firm called BIT2C. The bank had refused to make a transfer from the company because of their crypto association and the Attorney General came to this decision through the council of his inter-ministerial team which is headed by Erez Kaminitz, the deputy attorney general at the Civil Law Department.