Crypto ban in Israel: Attorney General says move illegal

Crypto ban in Israel

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The crypto ban in Israel has been termed illegal by the country’s Attorney general, Dr. Abihai Mandelblit. He rejected the two years courts ban on cryptocurrency transactions in banks and financial institutions. He mentioned further that every crypto transaction should be handled individually to find out cases of money laundering.

Reportedly, Mandelblit also said that banks in Israel could not place an embargo on cryptocurrency transactions as not every crypto linked transaction involves money laundering. He said that banks are also charged to look into risks of money laundering and ban suspected individual transactions and not an outright crypto ban in Israel.

Mandelblit sets to clear the air regarding cryptos

According to a document from a district court in Tel Aviv, Mandelblit was not in support of financial institutions not processing any cryptocurrency transactions because of fear it might be an attempt to launder money. It began during the hearing of Mercantile Discount Bank’s dispute with BIT2C as the institution declined to process payment to an account holder, saying that the account was involved in Bitcoin trading.

Crypto, alongside other virtual currency regulation issues, has been on for a long time in Israel as Mandelblit sets to clear the air regarding these cryptos and how they should be handled.  Although Mandelblit’s position on how cryptos ought to be processed contradicts guidelines laid down by the Bank of Israel, Mandelblit opines that cryptocurrencies offer advantages Israel will not enjoy if these digital assets are put on a ban.

Crypto ban in Israel, stand of the constitution

About two years ago, Israel proposed a new law to regulate activities in the cryptocurrencies activities in the country. However, crypto regulation in the country remains loose as lawmakers are not helping matters.

It is believed that lawmakers are skeptical because of the risks cryptocurrencies like BTC pose to Israel, such as heightened money laundering, scams, etc. In 2019 reportedly, Israel, alongside authorities in Europe, cracked a $6 million scam case involving Bitcoin. It leads to stricter laws for banks as they refused to process cryptocurrency transactions in Israel.

Featured Image by Pixabay

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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