Leumi, Israel’s largest bank, which was founded in 1902, will become the first Israeli bank to offer cryptocurrency trading.
According to Reuters, the announcement was made on March 24 by the bank’s digital platform Pepper Invest, after cooperation with US-based blockchain company Paxos.
For the time being, Pepper Invest customers will be allowed to purchase, hold, and sell Bitcoin and Ethereum in amounts of at least 50 shekels, or the equivalent of $15.49 at the time of publishing.
The announcement said that regulatory approval is still pending, and hence no launch date has been specified; however, it did state:
“Pepper will collect tax in accordance with the Israeli Tax Authority’s norms, eliminating the necessity for consumers to handle tax complications.” Additionally, the solution would eliminate the risks connected with downloading a digital bitcoin wallet.
Pepper will enable customers to trade cryptocurrencies at a reasonable rate, making it Israel’s first financial platform – and one of the few in the world – to do so. While Bank Leumi users will be able to utilise the services in the near future as well
Consumers will be able to acquire and sell cryptocurrencies via their Pepper Invest trading account, which will be accessible with a single button click.
Pepper will collect tax in compliance with Israeli Tax Authority standards during the sale transaction and subsequent conversion to NIS in the current account, enabling customers to avoid dealing with tax concerns on their own.
When compared to the existing barriers to turning crypto into immediately accessible money in a current account using the already available tools, the quick sale marks a significant technological development.