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Israeli bank Leumi will provide crypto trading services

Updated: Jul 25, 2024
Published: Mar 25, 2022
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Bank Leumi will be the first Israeli bank to offer cryptocurrency trading, thanks to a partnership with the U.S. blockchain firm Paxos.

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Leumi to enable crypto trade

On March 24, Reuters reported that Bank Leumi one of the  largest Israeli banks founded over 120 years ago and headquartered in Tel Aviv-Yafo, had entered the cryptocurrency market. Customers will be able to buy, hold, and sell bitcoin (BTC) and ether (ETH) in transactions starting at 50 shekels ($15.49), according to Leumi.

However, no official launch date has been set because Bank Leumi must first obtain regulatory approval from the country's central bank and the Tax Authority. Furthermore, Bank Leumi wishes to streamline the tax collection process. To that end, it will withhold taxes in accordance with Tax Authority guidelines when customers sell and convert digital assets back to shekels.

Banks are slowly entering crypto

Banks are gradually warming up to the idea of allowing crypto-related features on their platforms. Because of the increasing clarity in regulations and the growing demand from customers, it is difficult for banks not to dip their toes into crypto, as it is also an opportunity for them to increase revenue.

Last week, Israel's central bank announced draft regulations that would allow crypto businesses to operate in the country's financial system by requiring banks to examine each company individually rather than imposing blanket bans. Leumi's action could be in response to this.

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