Israeli based cryptocurrency exchange, Bits of Gold has secured a legal victory that is likely to serve as a precedent for any similar case involving a crypto exchange and any commercial bank in Israel.
At the start of the week, Finance Magnates reported that the Israeli Supreme Court made a final decision on a case involving Bits of Gold and Israeli Bank, Bank Leumi. The issue involved whether the cryptocurrency exchange could operate an account with the bank, given the nature of its business.
Bank Leumi had some time last year stopped offering its services to Bits of Gold on the ground that the cryptocurrency exchange could come into the same category as gambling firms. However, a court injunction back in February ruled that Bits of Gold could continue using the bank’s service temporarily until a final decision is made.
Following the decision in favor of Bits of Gold in the recent report, the exchange can now use the Bank Leumi’s services permanently.
Also, local cryptocurrency exchanges who were formerly cut off from banking services or had any similar difficulty can now enjoy banking services in the same way as businesses in other industries.
Speaking about the resounding court victory, Bits of Gold CEO, Yuval Roash labeled it an ‘exciting moment’ and reportedly said,
“We worked hard to set up a company, which met regulatory requirements, in a new industry, and those efforts paid off. I am proud to be a part of this flourishing industry and push it towards the right regulation.”
Meanwhile, in another legal report from Israel, Stmarket.co in May confirmed that an Israeli Supreme court ruled that Bitcoin is an asset and not a currency, a distinction that allows the authorities to tax crypto holders.