Daniel Elton Blog | Bank Lost to Cryptocurrency Exchanges Represented by Shaul Zioni | Talkmarkets
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Daniel Elton is a professional forex trader, financial writer, blogger, and analyst. He has a deep understanding of fundamentals, price actions and the world economy. Combining fundamental and technical aspects, he has a passion for sharing his ideas and analysis with ... more

Bank Lost to Cryptocurrency Exchanges Represented by Shaul Zioni

Date: Saturday, February 29, 2020 10:39 AM EST

The Israeli based cryptocurrency exchange company, Bits of Gold, received a significant boost on Monday 03/06/2019 when the Israeli Supreme Court made a landmark ruling in its favor in a case it had presented in court. The company was presented by attorney Shaul Zioni of Israel-based law firm Zioni Pillersdorf Phillip. The decision by the Supreme Court allowed the company to continue accessing banking services from Bank Leumi.

Advocate Shaul Zioni
Advocate Shaul Zioni

Bits of Gold has been licensed as a money exchanger business, and since its establishment in 2014, it has always held an account with Bank Leumi. In 2015, the bank decided to close the company's account on the basis that the company was dealing with crypto-currency trade, which the bank had classified as a form of gambling, hence listing Bits of Gold as a gambling company. Running such a business in the country was considered a violation of the law, and as a result, Bits of Gold would not be allowed to continue using Bank Leumi in its operations.


Since then, Bits of Gold has been working with an injunction awaiting the final ruling by the Supreme Court. But few months before the final verdict was given, a District Court granted a go-ahead to the bank to ban the company from engaging in bitcoin trading activities.


This ruling by a District Court prompted Bits of Gold to hire attorney Shaul Zioni to present them in court in an attempt to contest the decision. In his court presentation, lawyer Shaul Zioni argued that banks had no legal power to regulate companies’ activities sweepingly and that it is the banks’ responsibility to manage their risks. On February 2018, the Supreme Court gave a temporary injunction on the matter, which permitted the company to continue accessing banking services from Bank Leumi, until such a time when the court will give a final verdict on the matter.


The 2019 ruling provided a significant boost to the bitcoin trading business in Israel. Now, Bit of Gold company can continue with its cryptocurrency exchange business using its bank account with Bank Leumi permanently. This decision will also be abiding by any other Israeli bank. Therefore, Bits of Gold or any other bitcoin trading company can open a bank account and access banking services from any bank in Israel without any hindrance.

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