Bank Leumi (LUMI.TA) will become the first Israeli bank to enable cryptocurrency trading, its digital platform Pepper Invest said on Thursday after partnering with U.S. blockchain firm Paxos.
It said the new service will allow Pepper Invest customers to buy, hold and sell cryptocurrencies — limited to Bitcoin and Ethereum, for now — in transactions worth at least 50 shekels ($15.49).
The statement gave no launch date, saying regulatory approval is pending. Leumi is one of Israel's two largest banks.
The account of Bits of Gold was banned by Leumi Bank in the past based on concerns related to regulation. Nevertheless, a Supreme Court ruling said the bank could not block the crypto exchange's account.
The new move by Leumi Bank is remarkable as it stands for part of shifts in the financial sector across the world. In Singapore, DBS Bank is now offering cryptocurrency trading services and there are plans to make it available to retail clients by the end of 2022.
“Pepper will collect tax according to the guidelines of the Israeli Tax Authority so that customers will not need to manage tax complexities,” it said, adding that the service will also eliminate the risks of downloading a digital wallet.
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