Bank Leumi, the second-largest bank in Israel, will be the first to enable Bitcoin trading, allowing customers to trade and hold Bitcoin.
This report comes from Pepper Invest, the bank’s digital platform, which announced a partnership with Paxos on March 24.
Investors will be allowed to trade and keep “crypto”, initially just Bitcoin and ethereum. Purchases must be worth at least $15.
The CEO of Pepper Uri Nathan made a statement:
“We are proud to be the first in the Israeli banking system and one of the few worldwide to offer our customers to trade in Bitcoin simply, safely and reliably, without the need to download a “crypto” wallet and with all tax complexities being resolved by the bank This step is a game-changer and offers our customers a bridge to the new era of investments and to the future of banking.”
The move is still pending regulatory clearance and may fail. Pepper Invest claimed it would collect tax on transactions in accordance with Israeli Tax Authority norms, saving consumers from tax complications.
Other specifics should emerge in the following weeks. Regulatory permission is crucial, and Israeli authorities are cautious about crypto.
Binance has ceased operations in the nation after being asked by the financial authority.
Israel’s Defense Minister has confiscated 12 “crypto” accounts linked to terrorist organisations. As a result, every bank or company offering “crypto” services must comply with regulations.
Banks Providing Bitcoin Services
Bank Leumi joins a small group of global banks in allowing Bitcoin trading. In November 2021, Australia’s Commonwealth Bank revealed a first for the continent: Bitcoin trading on its platform.
Banks are progressively introducing Bitcoin-related functionality on their platforms.
They have resisted for a long time, with some even criticizing the market as a fad. Now, small and large banks are adopting Bitcoin.
Existing organizations do not want to lose out on the advantages of the decentralized technology.