According to its digital arm Pepper Invest, Israel’s second-largest bank, Bank Leumi, would allow crypto trading. Customers will be able to trade and hold bitcoin and ethereum as a result of a cooperation with Paxos, with the possibility of adding more crypto assets in the future.
Bank Leumi in Israel will launch crypto trading, making it the first Israeli bank to do so. On March 24, the bank’s digital platform Pepper Invest announced that it would work with Paxos to make the service possible. Bank Leumi is the country’s second-largest bank.
There are little more facts available at this time, but more information should be forthcoming in the following weeks. Regulatory approval will be crucial, and Israeli officials are wary of the cryptocurrency business. Following a request from the country’s financial regulator, Binance has ceased operations in the country.
The country is particularly concerned about crypto being used for illegal reasons, and Israel’s Defense Minister has seized 12 crypto accounts linked to terrorist organizations. As a result, any banks or businesses interested in providing cryptocurrency services must ensure that they comply with regulations.
Banks are increasingly eager to provide cryptocurrency services and to innovate.
Bitcoin and Ethereum are included in the mix.
Investors will be able to trade and hold cryptocurrencies using the functionality, which will initially only include bitcoin and ethereum. Purchases must have a minimum value of around $15.
The move has yet to be approved by regulators, so it could yet fall through. Pepper Invest stated that it will collect tax on transactions in accordance with the Israeli Tax Authority’s norms, eliminating the need for clients to deal with tax complexity.
Following a number of other banks around the world, Bank Leumi has decided to enable crypto trading. In November 2021, Australia’s Commonwealth Bank stated that its customers would be able to trade cryptocurrency on its platform, a first for the continent.
Banks are gradually warming to the concept of introducing cryptocurrency-related functionality on their platforms. They’ve been avoiding it for a long time, with some even criticizing the market and calling it a fad. Small and large institutions have both begun to embrace cryptocurrency.
Institutions in power do not want to miss out on the advantages of decentralized technologies. In addition, newer platforms such as Coinbase and Robinhood have forced them to innovate and keep up.