Crypto exchange wins access to banking service

Bits of Gold, a cryptocurrency exchange, has won a legal victory over an Israeli bank in its bid to keep access to banking services, Coindesk reports.

This week the Israeli Supreme Court ordered Bank Leumi to allow the exchange ongoing access its services. Earlier, Bank Leumi had made a move to bar Bits of Gold from using its bank after it classified cryptocurrency firms as gambling companies.

Cryptocurrency-related businesses have historically had problems with gaining access to banking services, and not just in Israel, so this latest ruling by a country’s Supreme Court may turn out to be significant.

The Israeli court had already issued an injunction in February that allowed the exchange to keep using Bank Leumi until it made its final decision. That decision when it came now allows Bits of Gold to keep using the bank on a permanent basis.

Yuval Roash, the CEO of Bits of Gold described the victory as an “exciting moment” for the company. He 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.”

Unsurprisingly, Bank Leumi isn’t happy with the court’s ruling and strongly objects to it. However, the high court’s decision effectively paves the way for cryptocurrency exchanges in Israel to continue using local banking services, and it may change the situation in other countries as well.