According to a Thursday report by Reuters, Pepper Invest, Leumi's digital platform, has partnered with blockchain infrastructure provider Paxos to launch crypto trading. Pepper Invest clients can now buy, sell and hold cryptocurrencies using the new service.
The move will only support BTC and ETH before adding support for other crypto assets. In addition, the minimum transaction value for cryptocurrencies was set at around $15.50 (50 shekels), as per the report.
There is currently no start date announced, and the new move is pending regulatory approval. The report highlighted that:
"Pepper will collect tax[es], according to the guidelines of the Israeli Tax Authority, so that customers will not need to manage tax complexities."
Banks in many countries were previously hesitant to accept BTC and other cryptocurrencies, but that situation changed as the demand from corporations and individual customers increased. Regulators have also shifted their attention away from outright bans and toward the development of a regulatory framework.
Leumi Bank had previously prohibited crypto exchange Bits Of Gold's account, citing regulatory concerns. However, a Supreme Court ruling back then, as reported by Cointelegraph, declared that Leumi Bank could not block the crypto exchange's account.
Cointelegraph reached out to Paxos for more information and the story will be updated with a response.
The development is significant as it represents a paradigm shift in the global financial sector's attitude towards digital assets. DBS of Singapore is already supplying crypto trading services to businesses and will extend these offerings to retail clients by the end of the year.
Furthermore, KB Bank in South Korea is readying its provision of crypto investment solutions for individual clients, and several other institutions are considering similar possibilities.