Despite the somewhat of the Israeli crypto space, digital currency-related firms have refused to leave the state to more welcoming regions. Now, the sixth largest bank in Israel has been sued by a local cryptocurrency mining firm, Israminers Ltd for denial of banking service.
Let the Courts Decide
Of a truth, every business in Israel has the right to own a bank account. However, , have been wholly denied this fundamental right by Union Bank of Israel, prompting the cryptocurrency business to take the matter to the court of law.
According to Israminers, the bank, which has been facilitating its financial transactions for three months, suddenly decided that it was no longer interested in doing business with the crypto firms.
Union Bank then notified the firm that it would no longer be able to receive funds from crypto exchanges, and the bank sent back all funds previously received in the account before closing it. As such, the mining firm’s operations were brought to a halt as Israminers were cut off from appropriate off-boarding solutions.
The owners of the firm have been left with no other choice but to go to court and they have also laid an official complaint to the Israeli banking regulator against the bank. The Herzliya court has also presented a temporary order against the Israeli Union Bank.
Unfavorable Crypto Ecosystem
Though the global blockchain-based digital currencies ecosystem remains largely unregulated, the Israeli banking system is one of the most hostile towards fintech businesses. It’s worth noting that a took place back in June 2017 when a local bitcoin exchange, , was denied access to banking services by , Israel’s second-largest financial institution.
The exchange dragged Bank Leumi to court, hoping that justice would be done. However, the bank told the Tel Aviv district court that it could no longer offer banking services to the exchange due to the nation’s strict Anti-Money Laundering (AML) policies.
Notably, and in what has been dubbed a resounding victory for the Israeli cryptosphere, Bits of Gold took the case to the Supreme Court. In February 2018, BTCManager that the Israeli Supreme Court had ruled in favor of the exchange, condemning the actions of Bank Leumi.
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Some of the wealthiest men in the world have continually been critics of bitcoin and cryptocurrencies in general. To the crypto enthusiasts, these people are only spreading FUD, vestiges of the system that blockchain is designed to disrupt. Bill Gates, the Microsoft founder and Warren Buffet, the Berkshire Hathaway CEO are among some of the famous critics of bitcoin. Speaking during a CNBC program on April 5, both men shared their thoughts on bitcoin. Charles Munger, the VP of Berkshire Hathaway and long-time friend and collaborator, was also part of the interview session.
bitcoin is Mere Speculation
Gates dismissed bitcoin as an asset class saying it does not support any real production activity and as such, there was no reason why it should be expected to increase in value. If this description is accurate, then bitcoin is a bubble. He also said that bitcoin is a “” kind of investment. What this means is that value is only derived because another person (the greater fool) is willing to pay a higher price. Gates also said that if it were up to him, he would short it (bitcoin) but he admits that there is no easy way to do that.
On the subject of ICOs, he considers them to be speculations of a crazy variety. The Microsoft founder even told a story of how he was given some bitcoins as a birthday present, which he sold a few years later.
Despite his negative opinions about bitcoin, Gates did admit that blockchain technology had its merit. However, Warren Buffett believes the entire space is one big sham and not worth all the hype.
bitcoin is “Rat Poison”
At the recent shareholder’s conference of Berkshire Hathaway, Buffett described bitcoin as “.” After a long list of negative criticisms leveled at the number cryptocurrency by Buffet, this is the latest.
He has previously referred to bitcoin as a bubble and . He also said cryptocurrency would come to a bad end. Buffett’s “rat poison comment” is akin to Munger’s “” from earlier in the year. Munger also believes that the United States ought to emulate China in banning cryptos completely. While both Buffett and Munger have been consistent in their criticism of bitcoin, Gates’ recent comment shows a change in his opinion on the cryptocurrency. Way back in 2014, Gates had positive things to say about bitcoin as he and exciting.
Negative Sentiments Stalling Price Growth
The negative comments might be temporarily slowing down the growth in bitcoin prices. The cryptocurrency had been on a steady rise in the past three weeks, almost reaching the $10,000 mark before slipping to $9,200 on May 6. The recent decline in the value of bitcoin was the first decline in prices in over four days.
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