Cryptocurrency firms should not be denied banking services: Israel’s Attorney General Avichai Mandelblit

• Israeli crypto firms get the attorney general’s support in the fight to have access to banking services.
• Mandelblit says that banks should not paint all crypto firms with one brush but monitor the firms for indicators of money laundering.

Banks in Israel are not supposed to deny cryptocurrency firms or those involved with digital assets financial services according to the country’s Attorney General Avichai Mandelblit. The banks should adopt the approach of monitoring and examining for indicators of money laundering and other illegal financial activities instead of halting financial services for the entire lot.

Israeli news agency Globes reported that Avichai Mandelblit made the remarks at the Tel Aviv District Court. However, his remarks directly contradict the central bank’s stance on the issue. Last year, banks were instructed to freeze accounts belonging to customers who received money from crypto-related activities. The directive made it difficult for Bitcoin investors in the country to file their taxes.

Interestingly, several states agencies agree with Avichai Mandelblit and his position was filed in case that involved Mercantile Discount Bank who had refused sign off on a transfer from, BIT2C, a local cryptocurrency exchange. The Attorney general’s positon is likely to have been influenced by recommendations made by an inter-ministerial team under the leadership of the deputy attorney general, Erez Kaminitz.