It is a good move from the Israel government but many government will not take action like this because most of the governments depend of the banks for the revenue so they will support the banks not citizen.But the regulation will give the permanent solution for this kind of problems.So no one can deny us from using bitcoin.
I agree with you. Most courts from other countries will not follow what Israel did. This is due solely by the fact that they don't have any basis for the action of forcing banks to render services to crypto transactions. However, if laws legalizing bitcoin is present in a country, then that in itself is basis enough.