Union Bank of Israel Hits with a Lawsuit by Bitcoin Mining Company

Recently, again there was a call from Israeli courts system to stop banks from halting crypto business. The Union bank refuses to operate an account to a mining firm.

The sixth largest bank, Union Bank of Israel has been hit with lawsuit by a bitcoin mining company. Israminers Ltd, accused for decision to stop accepting bitcoin exchange funds after three months of operations. The money already received in the account has been sent back from the bank and holding back the firm from buying mining hardware. Therefore, the bank said to close account within 30 days.

Further, Israminers have decided to take the case to the courts and asking bank to change its decision. The company along with Israeli banking regulator with an official complaint against Union Bank. However, the case has been accepted by Herzliya court by passing a temporary order against Union Bank.

Guy Penn, advocate told that:

“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”.

For instance, February, Bitflash LTD, which provides crypto trading services based in Acre. It has asked Tel Aviv District Court to order 11 banks to open a account without credit.

Last year October, Israeli Knesset passed a law to outlaw binary options following many fraudulent activities in the 10 years. Many of those who were in the binary options industry were already exploiting opportunities in diamond sales, predatory business loans and Forex, but cryptocurrencies and Initial Coin Offerings could be the next “big thing” for them if all goes well.

Although, it was a huge deal given that Israel is considering a global powerhouse of affiliate marketing. Although much of the efforts are targeted on Forex platforms such as Tel Aviv-founded eToro. The binary options and online gambling sites.

What are the act that crypto regulators have to take against banks who stopped crypto services? Share your opinions with us on Twitter and Telegram.

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Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.

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