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.
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.
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 also keen on ensuring that crypto is not used for illicit purposes, and the Defense Minister of Israel has seized 12 crypto accounts related to terrorist groups. As such, any banks or companies wishing to offer crypto services will have to make sure they comply with regulation.
Bank Leumi is increasingly eager to provide cryptocurrency services and to innovate
Bank Following a number of other banks around the world, 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.
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