Israel’s top bank, Bank Leumi, will become the first bank in the country to enable crypto trading services through its digital platform, Pepper Invest. This comes after the traditional banking institution entered into a partnership with blockchain firm Paxos.
Bank Leumi’s Pepper Invest crypto trading services
According to a Reuters reportwill users of Pepper Invest be able to trade the flagship digital assets, Bitcoin and Ethereum, through the platform. It was revealed that customers could spend as little as 50 shekels ($15.49) on their crypto purchases.
It should be noted that Bank Leumi’s announcement is yet to be approved by authorities and as such, no specific launch date has been set.
However, part of the announcement reads that,
“Pepper will collect taxes according to guidelines from the Israeli tax authorities so that customers don’t have to manage taxes.”
Bank Leumi’s decision to embrace crypto trading points to the level of growth and popularity crypto-related activities enjoy in the country. The bank is one of the largest banks in the Middle East.
Recently, Israel’s main financial regulator, the Israel Securities Authority, announced plans to regulate the crypto industry.
The regulator also organized a fintech hackathon to score several collaborations with fintech experts. A move designed to help the regulator gain the necessary exposure to regulate fintech and crypto.
Traditional Banks Continue Toward Crypto
While this is the first time a traditional bank in Israel has embraced crypto services, a number of conventional financial institutions around the world have already got their hands on the crypto cookie.
Most traditional banks and institutions such as Standard Chartered, CitiBank, MasterCard† BNY Mellonand UBS have expressed interest in the space by: to invest in various crypto projects.
And with the growing fear of losing their customer base to new crypto startups, banks love JPMorgan Chase and Goldman Sachs have stepped up their services by offering crypto trading options and offering crypto investment opportunities to their clients.
However, it should be noted that the lack of clear regulation driving the crypto space seems to be a stumbling block that prevents the majority of them from going fully into the industry.
But with the increasing adoption and popularity of the industry, more traditional institutions are likely to embrace the space, making the much-needed regulatory clarity into space.
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