A Bitcoin mining company called Israminers in Israel has initiated a lawsuit against Union Bank, the sixth largest bank in Israel, for blocking the firm’s account from receiving money from a Bitcoin exchange and closing the account within 30 days.
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. On 6th May, the Herzliya court has taken in the case and released a temporary order against the Union bank.
Israeli law states that banks have an obligation to provide banking services unless they have a reasonable reason to refuse to do so.
One of the founders of Israminers is a lawyer called Guy Penn, of law firm Penn & Co. He filed an injunction against the bank at a Tel Aviv court and a request to temporarily halt the account restrictions, as well as a complaint against the bank supervisor.
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.”
Penn shared the details of the case in a post on Facebook. He said that a temporary order has now been granted and Israminers account is functioning as usual. He wrote (translated):
“In my humble opinion, we cannot fold [when standing] against the Israeli banking system!!!!”
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.
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