Finance Magnates has learned that Bank Leumi, Israel's second largest bank, is now blocking Payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term to Bitcoin exchanges.
A number of users have had their payments stopped already. One user informed us that he was notified that his credit payment to 'Coinmama', a Bitcoin purchasing service, was blocked by Bank Leumi, which claimed that the action was by order of the Bank of Israel. The payment was attempted via Leumi Card, Bank Leumi's credit arm.
Coinmama allegedly a gambling site
The customer, who had previously made payments to Coinmama without issue, was informed by telephone that his latest payment was blocked because Coinmama is classified as a gambling site. He was also told that he was 'lucky' that his payments had been processed in the past, but now a Bank of Israel directive has closed this loop, and other banks will follow suit shortly.
He later received an official letter from Leumi Card, which said:
"As part of the framework of ongoing security activity and in light of the explicit instructions of the Bank of Israel (in accordance with the law prohibiting gambling in the State of Israel), Leumi Card monitors and blocks websites that execute gambling transactions. Leumi Card holders are not permitted to make transactions through them."
The customer was also told by Bank Leumi that Bank Hapoalim, another major Israeli bank, does transact with cryptocurrency exchanges as of now, but that this is also due to change soon.
Finance Magnates reached out the Bank of Israel for a statement. The bank said that the law that has been in place for some years is that banks must manage their own risk when dealing with illegal enterprises. It had no comment on the legality of Coinmama specifically or cryptocurrency in general.
This is in contrast to the information found in the letter from Bank Leumi.
In response to our request for comment, Leumi Card said: "We act in accordance with the provisions of the law and the company's Risk Management
Risk Management
One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent.
One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent.
Read this Term policy."
In June of this year, a troubling precedent was set for cryptocurrency exchanges. A dispute arose between Bitcoin exchange Bits of Gold and Israeli bank Bank Leumi after the latter denied service to the former.
Bits of Gold followed KYC reporting procedures, but the bank argued that the nature of cryptocurrency meant that it could not be sure who the recipients of the transactions would be, and thus could not be in compliance with anti-money laundering requirements. Tel Aviv district court ruled in favour of the bank.
Regulation not yet set
As one would expect in a country nicknamed 'startup nation', Israel is replete with blockchain hubs and startups. A Bitcoin ATM has been operational in Tel Aviv since August of this year. At the same time, the authorities have been lukewarm in their acceptance of cryptocurrency.
The Israeli Securities Authority has been evaluating the new industry, and the ICO craze in particular, with an eye to deciding how exactly to regulate it. Several options are under discussion, from treating digital currencies as securities to an outright ban. What is very clear though is that the authorities are keen to avoid another binary options-style scam festival.
Since the aforementioned court case, cryptocurrency exchanges have been intermittently claiming to have had incoming payments blocked, but only today has this been confirmed.
Finance Magnates has learned that Bank Leumi, Israel's second largest bank, is now blocking Payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times.
Read this Term to Bitcoin exchanges.
A number of users have had their payments stopped already. One user informed us that he was notified that his credit payment to 'Coinmama', a Bitcoin purchasing service, was blocked by Bank Leumi, which claimed that the action was by order of the Bank of Israel. The payment was attempted via Leumi Card, Bank Leumi's credit arm.
Coinmama allegedly a gambling site
The customer, who had previously made payments to Coinmama without issue, was informed by telephone that his latest payment was blocked because Coinmama is classified as a gambling site. He was also told that he was 'lucky' that his payments had been processed in the past, but now a Bank of Israel directive has closed this loop, and other banks will follow suit shortly.
He later received an official letter from Leumi Card, which said:
"As part of the framework of ongoing security activity and in light of the explicit instructions of the Bank of Israel (in accordance with the law prohibiting gambling in the State of Israel), Leumi Card monitors and blocks websites that execute gambling transactions. Leumi Card holders are not permitted to make transactions through them."
The customer was also told by Bank Leumi that Bank Hapoalim, another major Israeli bank, does transact with cryptocurrency exchanges as of now, but that this is also due to change soon.
Finance Magnates reached out the Bank of Israel for a statement. The bank said that the law that has been in place for some years is that banks must manage their own risk when dealing with illegal enterprises. It had no comment on the legality of Coinmama specifically or cryptocurrency in general.
This is in contrast to the information found in the letter from Bank Leumi.
In response to our request for comment, Leumi Card said: "We act in accordance with the provisions of the law and the company's Risk Management
Risk Management
One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent.
One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent.
Read this Term policy."
In June of this year, a troubling precedent was set for cryptocurrency exchanges. A dispute arose between Bitcoin exchange Bits of Gold and Israeli bank Bank Leumi after the latter denied service to the former.
Bits of Gold followed KYC reporting procedures, but the bank argued that the nature of cryptocurrency meant that it could not be sure who the recipients of the transactions would be, and thus could not be in compliance with anti-money laundering requirements. Tel Aviv district court ruled in favour of the bank.
Regulation not yet set
As one would expect in a country nicknamed 'startup nation', Israel is replete with blockchain hubs and startups. A Bitcoin ATM has been operational in Tel Aviv since August of this year. At the same time, the authorities have been lukewarm in their acceptance of cryptocurrency.
The Israeli Securities Authority has been evaluating the new industry, and the ICO craze in particular, with an eye to deciding how exactly to regulate it. Several options are under discussion, from treating digital currencies as securities to an outright ban. What is very clear though is that the authorities are keen to avoid another binary options-style scam festival.
Since the aforementioned court case, cryptocurrency exchanges have been intermittently claiming to have had incoming payments blocked, but only today has this been confirmed.
