The incident occurred in 2014, when the guy used his bank account to make Bitcoin transactions. In 2017, crypto investors began trading such cryptos by selling them and dividing the proceeds through several transactions totaling just under NIS 50,000 ($15,530).
The bank said that such a strategy was reportedly used to conceal the transactions, causing Union Bank to raise red lights. The client, on the other hand, stated that the high quantity of deposits was mainly due to the method he liquidated the cryptocurrencies, which he did at a random schedule instead of concealing them from the authorities.
“In this instance, I think the claimant’s behavior caused a crisis of trust in his connection with the bank, which might also explain the bank’s reluctance to offer the facility to the applicant,” said Judge Limor Bibi. Regarding these transactions, I won’t accept the applicant’s confession that a transfer of a full sum of NIS 450,000 was divided arbitrarily, culminating from the transaction volume, without just under 14 transfers, all of which are for much less than NIS 50,000, and I believe that this is a premeditated division, which, as contended by the bank, is aimed to nullify the bank’s capacity to track and decipher activity using the current methods at its discretion.”
Israeli banks are recognized for their stringent regulations when it comes to dealing with dangers associated with cryptocurrency transactions.