For the first time in the Israeli banking system: PEPPER by Leumi Will Enable Trading in Cryptocurrencies

Rhea-AI Summary

Pepper Invest, a digital investment platform by Leumi, has launched cryptocurrency trading, becoming the first banking platform in Israel to do so. This service allows customers to trade Bitcoin and Ethereum for as little as NIS 50 per transaction, with tax complexities handled directly by the bank. The initiative follows a collaboration with US-based Paxos, a regulated blockchain infrastructure provider. This new offering aims to simplify the process of buying, holding, and selling cryptocurrencies, marking a significant innovation in the Israeli banking sector.

Positive

• First banking platform in Israel to offer cryptocurrency trading.
• Partnership with Paxos ensures a secure and regulated trading environment.
• Ability for customers to trade Bitcoin and Ethereum starting from NIS 50 per transaction.
• Simplifies tax management for customers, as the bank handles tax complexities.

Negative

• None.

TEL AVIV, Israel, March 25, 2022 /PRNewswire/ -- Pepper Invest, the digital investment platform of Pepper by Leumi (TASE: LUMI), announced today the launch of an innovative and unique service for the Israeli banking system – cryptocurrency trading. Thereby, Pepper will be the first banking platform in Israel - and among the few worldwide - to allow its customers to trade cryptocurrencies, in an attractive pricing model. The services will also become accessible to Bank Leumi customers in the near future.

The new service is the outcome of collaboration recently finalized between Leumi Group and the US company Paxos, the leading regulated blockchain infrastructure platform. Upon completion of the regulatory approvals required, the service will allow Pepper Invest customers to buy, hold and sell cryptocurrencies, in the first stage Bitcoin and Ethereum, starting from an amount of NIS 50 per transaction. With the click of a button, customers will be able to buy and sell cryptocurrencies through their trading account at Pepper Invest. During the sale transaction and conversion back into NIS in the current account, Pepper will collect tax according to the guidelines of the Israeli Tax Authority so that customers will not need to manage tax complexities. The simple sale is a significant innovation compared to the present difficulties in converting cryptocurrencies into available funds in a current account, with the tools presently available.

Paxos is a pioneer in building safe, regulated digital asset solutions for some of the world's leading companies. The company was founded in 2012 and holds regulatory licenses in the leading regulatory authorities in the US. It has the most comprehensive oversight of any global blockchain operator. The company has dozens of strategic customers and investors, such as Paypal, Bank of America and Revolut. It manages more than USD 20 billion in assets and reaches more than 400 million end customers worldwide.

Uri Nathan, CEO of Pepper: "We are proud to be the first in the Israeli banking system and one of the few worldwide to offer our customers to trade in cryptocurrencies simply, safely and reliably, without the need to download a crypto wallet and with all tax complexities being resolved by the bank This step is a game-changer and offers our customers a bridge to the new era of investments and to the future of banking." 

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SOURCE Bank Leumi

FAQ

What is the significance of Pepper Invest launching cryptocurrency trading?

Pepper Invest is the first banking platform in Israel to offer cryptocurrency trading, representing a major milestone for the country's banking system.

Which cryptocurrencies can customers trade on Pepper Invest?

Customers can initially trade Bitcoin and Ethereum on the Pepper Invest platform.

What is the minimum amount required to trade cryptocurrencies on Pepper Invest?

The minimum amount required to trade cryptocurrencies on Pepper Invest is NIS 50 per transaction.

How does Pepper Invest handle tax complexities for cryptocurrency transactions?

Pepper Invest manages tax complexities by collecting applicable taxes during the sale transaction, eliminating the need for customers to handle tax issues themselves.

Who is the partner behind Pepper Invest's cryptocurrency trading service?

Pepper Invest has partnered with Paxos, a leading regulated blockchain infrastructure platform, to facilitate cryptocurrency trading.