The Israeli Supreme Court has granted a motion for interim injunction by Bits of Gold Ltd., enjoining Bank Le’umi Le’Israel, one of Israel’s largest and leading commercial banks, from ceasing to provide banking services to the company's bank account (which is related to Bitcoin commerce). The injunctive relief was granted for the duration of the appeal proceedings between the bank and the company.
Bits of Gold is an Israeli company providing Bitcoin and other cryptocurrency related services. The company was formed in 2013 and opened its bank account with the bank the same year. In 2015 the bank notified the company of its decision not to allow any activity in its account related to commerce in cryptocurrencies.
In June 2017, the Tel-Aviv District Court dismissed the company's lawsuit against the bank and determined that the bank may refuse to allow companies engaging in Bitcoin trading to use their bank accounts for transactions related to Bitcoin trading. The Court held that any decision the bank makes with respect to the company’s Bitcoin-related activities would be within the permissible zone of reasonableness.
The company appealed to the Israeli Supreme Court. On the motion for interim injunction, the Supreme Court decided that the balance of hardships tips in favor of Bits of Gold, because the potential damage to the bank is presently only speculative, whereas the potential damage to the company may lead to it ceasing its operation.
According to the Supreme Court's decision, the bank may still inspect each and every transaction and take necessary steps to minimize the potential risks emanating from the company's activity.
Click here to the read the Supreme Court's decision (in Hebrew).