Largest Israeli Bank Leumi stepping into crypto; would be first in the country

One of the oldest and largest financial institution is to adopt blockchain tech to allow Bitcoin and Ethereum trading services to its users

It seems like those days when traditional financial and economic institutions like banks were skeptical of blockchain technology-based cryptocurrencies and digital assets. Now the banks like institutions are looking forward to seeking ways to cope with the new age currencies. Recently the largest bank of Israel, Leumi, became the latest example. 

As reported by Reuters on March 24th, Israel’s largest bank, founded more than 120 years ago, headquartered in the capital Tel Aviv-Yafo has entered the cryptocurrency world. For which the organizations partnered with New York-based financial technology and blockchain service provider company Paxos. This would result in enabling the firm to provide trading services for Bitcoin and Ethereum. 

To be specific, the banking institution anticipated allowing its customers and clients to buy, sell and hold bitcoin (BTC) and ethereum (ETH), the two largest cryptocurrencies by market cap. As per the reports, the bank would charge the minimum transaction cost of at least 50 shekels, Israeli currency totaling around $15. 

Although the official date of launching the services has not been cleared, regulatory approvals from authorities like the Central Bank of Israel and the Tax Authority are pending. Once approved by authorities, the bank’s online application would start cryptocurrency services allowing clients to invest in digital assets classes. 

Apart from cryptocurrency services, Bank Leumi also plans to simplify the process of tax collection. In order to do so, the bank would retain taxes as per the guidelines showcased by the Tax Authority during the selling and converting of cryptocurrencies in shekels. 

However, the approach of the largest bank in Israel is different from recent steps taken by another Israeli bank, Bank Hapoalim. The bank denied when a lady wanted to deposit her $320,000 worth of bitcoin, which she made by investing in cryptocurrency. 

The trend seen by the banks to adopt cryptocurrencies and related operations initiated by prominent banks in America. Initially, those banks such as JPMorgan, Goldman Sachs, Bank of America, and Citigroup were critics of digital assets. But later on, the institutions went down the road and adopted the crypto opportunities in their respective manners.

For instance, Morgan Stanley allows its customers to invest in bitcoin with the help of several funds. On top of that, to avail BTC exposure, it purchased Grayscale’s bitcoin trust shares. While BNY Mellon, which is also seen as a leader in crypto adoption, has launched crypto-related services, and along with that, it also participated in blockchain based projects’ funding rounds. It also partnered with Grayscale to convert the trust into a bitcoin ETF. 

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

Latest posts by Steve Anderrson (see all)