Israel’s second largest bank, Bank Leumi, will allow crypto trading, according to its digital arm Paper Invest. Through the partnership with Paxos, the firm will allow clients to trade and hold bitcoin and ethereum, potentially allowing for more crypto assets in the future.
Israeli Bank Leumi will introduce crypto trading, making it the first Israeli bank to allow trading of digital assets. The bank’s digital platform Paper Invest announced on March 24 that it would partner with Paxos to facilitate the service. Bank Leumi is the second largest bank in the country.
Bitcoin and Ethereum in the Mix
With this feature, investors will be able to trade and hold cryptocurrencies, which will initially only include Bitcoin and Ethereum. The minimum price for purchase should be around $15.
The move has yet to receive regulatory approval, so it may still fall through. Paper Invest said it will collect taxes on transactions in accordance with the guidelines of the Israeli Tax Authority so that customers do not need to manage tax complications.
Few other details are available, but more information should come in the coming weeks. Regulatory approval will be important, and the Israeli authorities are somewhat strict about the crypto market. Binance has stopped operations in the country following a request from the country’s financial regulator.
The country is also keen to ensure that crypto is not used for illegal purposes, and Israel’s Defense Minister has seized 12 crypto accounts belonging to terrorist groups. Therefore, any banks or companies offering crypto services must ensure that they comply with the regulations.
Banks are now eager to offer and innovate crypto services
Bank Leumi’s decision to allow crypto trading follows select banks around the world doing the same. In November 2021 the Commonwealth Bank of Australia announced that it would allow its customers to trade crypto on its platform, a first for the continent.
Banks have slowly come around to the idea of allowing crypto-related features on their platforms. For a long time, they have avoided it, some even going so far as to criticize the market and call it a fad. Now, small banks and institutional banks are adopting crypto.
Existing institutions do not want to miss out on the benefits of decentralized technology. Furthermore, new platforms such as Coinbase and Robinhood have scrambled to innovate and maintain them.