A bitcoin company Bitflash LTD. was formed in Israel in the month of January. In order to expand its business, the company applied for the account opening procedure in various banks. But all the banks rejected the application of the company and now the Israeli company is suing all the banks in the country. The company states that there exists no reason for running a company without having even a single bank account. Without the bank accounts, it would be impossible for the company to receive payments from the clients and make other transactions for the business purpose as well. All these hindrances would be effectively preventing the company to carry out its operations smoothly.
The company was established with the aim to avail digital currency trading services based on Acre to the crypto traders. The company filed a petition in Tel Aviv District Court on 18 February 2018 to release a statement ordering all the eleven banks to open the account of the company without credit. The company asserts that the disapproval to the applications for opening a bank account is the violation of the law and reflects the lack of faith in the people of the country.
As per the statement released by Bitflash the company has been approaching a number of branches of Israeli banking corporation to open the bank account since its establishment. But the bank managers were likely reluctant of the fact that the company deals with digital currency trading and this ultimately led to the refusal of the applications. In order to get rid of this, Bitflash filed the petition against the banks.
However, it was unfortunate for the company that the court said in the previous year that the bank can refuse to work with a bitcoin exchange. Since the company is emphasizing the representatives of the banks that it does not require any credit and only needs a current account to enable the transaction of money from the clients within the country to its account. However, some of the banks said that this way would be unable to track the means of payment and know where the company is getting funds from.