Tel Aviv District Court Forces the banks to Accept Funds from Bitcoin SaleMay 12, 2018
For the bitcoin users, the banking system of Israel keeps mounting challenges, would it be exchanges, traders, or miners, and keeps on getting slapped for by the court. The recent example came from Tel Aviv, in which the bank tried denying the arriving transfers from the exchange.
The largest bank in Israel, the Bank Hapoalim (TASE: POLI) has been forced by Tel Aviv court to accept the transfers funds, which are the result of the sale of Bitcoin. The bank’s client denied the incoming fund transfer of $195,000 from the European bitcoin trading venue going to his joint account.
The bank had claimed that they have a reasonable basis for that certain issue, as the sale of Bitcoin is linked to the financing of terror and money laundering, despite the manifested documents that indicate that the exact source of funds is used for the buyout in this case, and allowing ability to monitor the money from the start to the end.
Furthermore, the fund transfer transaction is reported by the certain clients to Israel Authority Tax. There is nothing of it becomes sufficient in convincing Hapoalim, which insisted on the refusal and give information to the client that intends to return the funding within a single week.
This Sunday, both of the involved parties made their appearance in the court, and Hapoalim folded. In the hearing, which is done before Judge Limor Bibi, pertaining to the temporary injunction requests, it had become clear that there is no real violation of the AML laws or of taxation offense. Also, the bank is then forced to agree that the transfer funds will be deposited in the account of the client as soon as possible.
In this case, the traders agreed to sign the IRS W8 form that proclaims that he has no connection to the US. This is indicating that like in the previous cases, the real concern of the banks in Israel is the eventual crackdown by the regulators from America. Moreover, the district court had rejected the request of the bank for gag order pertaining to the case.
The law firm Doron, Tikotzky, Kantor, Gutman & Amit Gross had commented that they have recently witnessed the increasing bank fights on Bitcoin and other virtual currencies. What seems to be the planned regulation of the targeted assassination, banks are preventing their clients from returning the foreign money that is orginated from the virtual currencies to the Israeli account.