Bitcoin traders fight against bank lockouts in Israel

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Bitcoin has been the center of attraction for banks and governments in the past few years because of the way it works. Recently, Bitcoin fans in Israel have taken a step forward and lodged a petition that demands the nations banks reveal their working policies in the context of cryptocurrencies.

Several lawsuits against the financial institutions that refused to accept the money that was generated by selling cryptocurrency were also filed. The Israel Bitcoin Association has requested the Bank of Israel to publish their guidelines and policies for the usage of digital currency, but the request was turned down by them. The banks have even blocked many traders from opening up accounts in the banks.

The Israel Bitcoin Asociation is funding a lawsuit that will force the Bank of Israel to accept money from a trader who has earned that money by selling cryptocurrencies. The reason behind this rejection from the banks is the association of the name Bitcoin with the money. Over the years, banks and governments have thought of it as an easy way of doing and paying for illegal activities.

The Bank of Israel has not even allowed the Bitcoin Association to open up an account in the bank, despite knowing that the group only wants to spread awareness among the people and promote usage of cryptocurrency.

A local outlet in Israel, Haaretz in a report said that the nation has been unable to collect 300 million shekels($85 million) in unpaid taxes which were generated by selling Bitcoins because people are blocked out of the banking system altogether. This problem has affected Bitcoiners in the US, too. Last year, a hedge fund executive claimed that Bank of America had blocked his 3-year-old daughters account because of her ‘connection’ with the industry.

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Vineet Chaudhary
Vineet Chaudhary
Vineet Chaudhary is a content writer with computer applications as his background field. His interests range from writing and photography to going out for trips and rides on weekends.

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