Wednesday, June 12, 2013

Israeli Banks Resisting Bitcoin Exchanges reports:

While the decentralized nature of bitcoin means that it cannot be shut down by any government of financial institution, they can make it difficult for people to purchase the currency in the first place. That would effectively restrict access to the currency. It appears that is happening to some degree in Israel, as reports from theIsrael Army News website and users on the BitTalk forum indicate.
Even though the Google translated version of the Israel Army News report takes a degree of interpretation, it appears that banks are limiting transactions between Israel residents and known Bitcoin accounts, and in some cases even refusing them. Specific banks were not referenced in the Israel Army News website, but a user on the BitTalk forum reported that his/her bank, “Mizrahi Tfahot”, sent the following email in response to a request for transfer of funds to Mt. Gox.
From a check made in the bank it seems that your account contains activity involved with virtual currency. The activity is characterized by issuing wire transfer to a company called MTGOX, through which this currency is purchased.

Virtual currency is anonymous and unregulated. Trading them is not regulated and thus poses a high risk for the bank.

Therefore, the bank has decided not to allow such activity for our customers, until guidance/clarifications are issued by the Israel Central Bank.

You are requested to stop any such activity.

We inform you that if you do not comply, we will have to refuse any activity directly or indirectly related to this area of activity.
It appears from these two reports that Israel banks are giving fear, uncertainty and doubt (FUD) as their reasons for not dealing with bitcoin exchanges. 

1 comment:

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