Several Bitcoin and crypto traders of Israel are facing a problem with banks right now. Many banks are not very sympathetic with crypto traders and are closing their accounts. This has prompted several of them to start a series of lawsuits against the banking institutions, the Globes has recently reported.
The problems are pretty varied. Some people have tried to pay their crypto taxes, only to find that the banks do not accept their payments. Others have lost their accounts or were blocked from opening one.
According to the investors, the national central bank, the Bank of Israel, is not helping either. The bank is said to be protecting banks affirming that their policies to block customers or not are a “commercial secret”, so traders have nobody to turn to.
Jonathan Klinger, the legal advisor of the Bitcoin Association in the country, affirms that the institution started to take action against banks because the regulators seem to be completely ignoring the traders and their problems.
Now, a lawsuit is in place and the main target is the Union Bank of Israel. The bank, according to the petition, has refused to accept crypto clients without even examining the circumstances. If you deal with Bitcoin in any way, you are likely to be cut out of the banking system of Israel.
The Bitcoin Association does not trade BTC, but it was also denied the opportunity to open up an account only because of its promotional relationship with cryptos. The reason for that? Well, it has Bitcoin on its name.
The problem is so big that the government is expected to lose $85 million USD in taxes because of it and even in this case nobody actually seems to care enough.