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Israel’s Tel Aviv court rules bank can refuse to accept deposits originating from crypto entities

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Israel's Tel Aviv court rules Bank can refuse to deposit crypto transacted funds but cannot close client's account
Source: Pixabay

A Tel Aviv District Court, for the second time, ruled that the Union Bank of Israel [UBI] will not be allowed to close the account of mining firm, Israminers Ltd. However, the bank can choose to refuse deposits originating from cryptocurrency entities, the court ruled.

Tel Aviv District Court Judge Limor Bibi, in her judgment, stated that the bank’s policy against depositing funds originating from anonymous cryptocurrency trades was justifiable, in order to curb money laundering and function in accordance with legal requirements like KYC.

However, the court did rule that the bank’s sweeping policy “did not distinguish between activity, the scope of activity and different types of activity.” According to Bibi, the Israeli bank’s hostile stance to deny operating an account dealing with virtual assets was too ‘broad’.

Israminers had filed an appeal last year after a branch in the Tel Aviv area claimed that the firm had violated the bank’s policy.

This is not the first instance where an Israeli legacy banking entity was asked by the courts not to halt crypto-related activity and its clients, without a legitimate argument.

In May 2018, the same Tel Aviv District Court forced Israel’s biggest banking institution, Bank Hapoalim, to accept the transfer of funds resulting from a client’s Bitcoin sale, even when the account holder presented documents which clearly stated the exact source of the funds. The client was denied a deposit of $195k originating from a Bitcoin trading platform, following which the court refused the bank’s argument of there being a violation on the client’s side.

Earlier in March, the Israel Securities Authority [ISA] issued its final report on cryptocurrency regulation. The framework was outlined to bolster the crypto sector and secure the rights of the crypto investor.



The ISA with respect to cryptocurrency assets stated,

“The committee recognizes the great importance of the direct connection between the Securities Authority and the sector in order to further professionalism among its employees, recognition of the sector by the Securities Authority, study of its special characteristics, and providing a fitting regulatory solution for it.”

Anat Guetta, the Chairwoman of the ISA, had earlier asserted that the dynamic and innovative technology associated with crypto, was here to stay.





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Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra

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Bitcoin’s [BTC] biggest threat is its users, not governments, says Bitcoin.org’s Cobra
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, saw a significant surge earlier this month, helping the coin break strong resistance at $5,000 and $5,200. Following the great fall of the king coin in early 2018, the Bitcoin ecosystem was struggling with scalability and technological issues, eventually leading to the hard fork.

Bitcoin.org’s Cobra, who is also the co-owner of Bitcointalk.org, has always maintained that Bitcoin was the cryptocurrency to look out for through his various Twitter bouts with prominent personalities in the cryptoverse. Due to his strong, unbridled support for Bitcoin, he has often trashed altcoins for their low market dominance.

In a new Twitter thread, Cobra spoke about the “biggest threat” to the Bitcoin ecosystem. Even though many crypto-enthusiasts believe that governments and technological issues were the biggest threats to the king coin, Cobra had a completely different opinion.

According to the Bitcoin maximalist, users have the potential to signal Bitcoin’s doom. His tweet read,

Source: Twitter

Source: Twitter

Though most Bitcoin supporters usually support his opinions, this tweet was met with a lot of resistance. Twitterati swarmed the thread in an attempt to prove him wrong. A user named @MrHodl alleged that this could not be true as Bitcoin had “no community.” He added that this, in turn, prevented toxicity in the ecosystem.

Cobra replied to the tweet stating,



“I think there is a community, it’s just not fully representative of everyone with a stake in Bitcoin. Most holders are quiet and not too familiar with what’s going on. There’s people with 1000+ BTC and they don’t engage at all with discussion platforms, just lurk.”

Some Twitter users took it as an attack on Bitcoin investors and opposed Cobra’s stance. A user @CarstenBKK commented,

“Maybe I am lost in translation. What do you wanna tell us? That you are part of Bitcoin network of people owning/using it, but you are just disgusted by the idea, that the network is called community in the sense of direct human collaboration and affection to the groups ideals?”

Previously, Cobra had accused Twitter’s Jack Dorsey and Square Crypto of pandering to Bitcoin users, while also suggesting that the crypto project was merely a way to bring in more users for Dorsey’s CashApp. His tweet read,

“Gotta respect how hard @sqcrypto is pandering to Bitcoiners. Very clever how @Jack has embedded himself in the community; in return the community promotes @CashApp, which gives that service a small but dedicated and activist group of early users.”





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