Israeli banks should not deny services to firms involved with cryptocurrencies, according to Israel's attorney general Avichai Mandelblit.

Instead of halting fiscal services for all crypto firms, banks should closely examine each case for indicators of money laundering risks or other illicit financial practices, Mandelblit told the Tel Aviv District Court.

Mandelblit's stance purportedly opposed to a position by Israeli central bank

Mandelblit's stance — reported past Israeli news agency Globes on Feb. nineteen. —  is in opposition to the view of the country's central bank, the Banking company of Israel.

During 2022 a number of Israeli banks froze the accounts of customers receiving transfers derived from crypto. As reported past Cointelegraph, the action meant some Israeli Bitcoin (BTC) investors were unable to pay their taxes because banks would non accept their deposits.

In Baronial 2022, an investor sued Israeli Bank Hapoalim for nigh $23 million, accusing it of refusing to accept deposits of profits earned through Bitcoin.

It's a like story in other parts of the world. The Cyberspace and Mobile Clan of India is currently fighting confronting the country'south fundamental banking concern'due south prohibitions against the provision of financial services to crypto firms.

A number of state agencies allegedly supports Mandelblit

Mandelblit'southward position was filed in a case involving Mercantile Discount Bank'southward refusal to authorize a transfer from local crypto exchange BIT2C. Co-ordinate to Globes, the AG'southward stance was based on the recommendations of an inter-ministerial team headed by Erez Kaminitz, deputy attorney full general at the Civil Law Department.

The squad includes representatives from a number of state agencies and departments such equally the Ministry of Justice, the Israel Coin Laundering and Terror Financing Prohibition Authorization, the Israel Capital Markets, Insurance, and Savings Authority, and others.

Despite the stance of Israeli banks, the government of State of israel has been looking closely at blockchain technology. Last month the Israeli Securities Authority issued an information request to identify regulations that are preventing the development of blockchain-based ventures in the country.