Bank Leumi Integrates Bitcoin Transactions with Customers

[348Judah]

One of Israel's largest commercial banks, Leumi, is extending its decision to enable its customers to operate Bitcoin transactions through the bank with their partnership with Galaxy, which will create a platform whereby users could buy and sell Bitcoin or any other crypto on the Galaxy platform through the bank Leumi; this is the 1st of its kind in Israel. We hope to see more coming, as well as extending to other countries.

Bank Leumi customers will be able to buy, hold and sell bitcoin, ether and solana through the Leumi Trade app.
Galaxy will provide the trading and custody infrastructure, with the service expected to launch in early 2027.
The planned launch would make Bank Leumi the first bank in Israel to offer digital asset trading directly to its customers.https://www.coindesk.com/markets/2026/08/14/israel-s-largest-bank-partners-with-galaxy-for-crypto-trading

Haven said that, Israel is also showing a commitment to ensure that all bitcoin users across the country have the support of the government by creating such opportunity for them with the full license of operation of Galaxy in collaboration with Leumi bank, now people are seeing bitcoin as an acceptable digital currency that could make everyone enjoy seamless transaction, the bought the government and the bank customer's will put enjoy these opportunity as regulation is being put in place.

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

[free-bit.co.in]

With the bank-based Bitcoin system, we are once again relying on intermediaries instead of financial sovereignty.

I would call this a positive on-ramp for Bitcoin adoption. But it won't help those who are concerned about privacy. Maybe they can make Bitcoin access easier so many people can use banks for convenience. But they will be deprived of the key benefit of self-custody.

[Upgrade00]

It's no surprise they are launching their own app to facilitate the trade from the bank. They will want to use the trust traditional bank users have to get them to store their bitcoins on the app after buying.

I don't know if it's changed, but there were limited options at a time for people from Israel who want to buy crypto. If there are limited alternatives, it's a welcome development for some who need the option to be able to hold some. They can structure their storage after their purchase.

[YellowSwap]

And so it begins, never thought it would be from Israel out of many other countries, and I bet that loads of that bank customers will be proud to use this, it can never be me though.

I choose Bitcoin to stay away from the Banks itself and also the government, I can't imagine me buying my Bitcoin through the banks now for any reasons, it means there will be nowhere left to hide.

I'm not using that HIDE word for criminal activities but for my own privacy reasons only, I've gotten to know that so many people in the world don't know the value of privacy, it's whyamy embrace these offers from centralised entities.

[Alvin_talk]

Well, in this case I'll say nothing goes for nothing. You cannot expect bitcoin transaction to be performed  through a centralised system without a breach on your privacy, for sure this is a compromise of ones privacy.

But I'll say it's still a good initiative because it tends to promote bitcoin adoption. Who knows, maybe with time more people over there will understand the original purpose of bitcoin and switch more to privacy wallets that won't hold your coins until you provide your  KYC information.

[Awaklara]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

After everything went down like that, for those who don’t care about anonymity and decentralization, of course they wouldn’t embarrass the government’s policies. They see it as something positive. But from our perspective, it’s clearly an attempt by the government to manage assets they actually can’t control. So the system will be like fiat banking? And the country will make revenue from taxes on Bitcoin held in banks.

[aoluain]

2 reasons this is negative

1st. they are Israel based
2nd. trusting a third party with your coins

[bitLeap]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

If I'm not mistaken, Switzerland is already early integrating Bitcoin into bank applications, so this implementation system needs to be supported by a truly open state policy on bitcoin and crypto. If the goal is to be adopted then it is accepted but when the goal is to control and control finances then it is definitely better to avoid buying bitcoin through bank apps. It doesn't matter how practical this method of buying is because you are really being watched.

[BALIK]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

Actually, I don't see any problem with this. With the addition of large institutional brokers like Israel Bank and Galaxy, retail users will now be able to trade more easily. Ordinary people who previously could not buy Bitcoin due to various problems or had very little knowledge will now be able to learn about Bitcoin and buy it. I think this is great news for institutional adoption.

But they will be deprived of the key benefit of self-custody.

And if you prefer self-custody, nobody is stopping you. Go ahead and self-custody your BTC, what's the problem? Did they force you to use their app or give up your own keys?

[Danish Ali]

government support for the use of Bitcoin be at the expense of our privacy

Yes. Bank hold your keys, government track every transaction through FATF rules. You getting Bitcoin price, not Bitcoin freedom. Big difference.

[Dr.Bitcoin_Strange]

Well, this is majorly to the advantage of the bank and the government in terms of taking fees and taxes from Bitcoin investors who uses this method to buy Bitcoin and sell it when they have made profit. It's an easy method for the government to track people's transactions and collect tax, but the investor has no privacy since they will be submitting all their information to the banks for proper verification (just like CEX KYC) before they are allowed to use the platform.

I don't know if citizens in that place finds it easy to buy and sell Bitcoin or whether they struggles to do so. If citizens finds it difficult to do so, then this method might actually be for their advantage since they can now easily buy Bitcoin through the bank but the disadvantage is the KYC they will have to do before using the bank.

[Karl_3000]

Haven said that, Israel is also showing a commitment to ensure that all bitcoin users across the country have disappoint of the government by creating such opportunity for them with the full license of operation of Galaxy in collaboration with Leumi bank, now people are seeing bitcoin as an acceptable digital currency that could make everyone enjoy seamless transaction, the bought the government and the bank customer's will put enjoy these opportunity as regulation is being put in place.

I do not understand what you mean with this. Do you mean that the government will be disappointed? The banks can be controlled by the government with the help of the central bank in Israel. Also customers of the bank using bitcoin will pay tax in a way they will not be able to escape paying the tax, so they are helping the government.

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

Some people do not know how to invest in bitcoin, buying through the bank make that easy for them, but they do not have complete control of their bitcoin. It benefits both the government and such people.

[coinrifft]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

I guess that is the trade-off, as we have seen years ago when Bitcoin was a hot topic for government around the world. Now, some of them have accepted it, but you have to comply with regulations like submitting your personal documents.

And it's interesting of all the countries, it's Israel are now entering the picture. Perhaps they know that Bitcoin is going to be huge and then want to give chance to their population thru their banks. So whatever angle we look at it, still a welcoming news for Bitcoiners around the world.

[348Judah]

Haven said that, Israel is also showing a commitment to ensure that all bitcoin users across the country have disappoint of the government by creating such opportunity for them with the full license of operation of Galaxy in collaboration with Leumi bank, now people are seeing bitcoin as an acceptable digital currency that could make everyone enjoy seamless transaction, the bought the government and the bank customer's will put enjoy these opportunity as regulation is being put in place.

I do not understand what you mean with this. Do you mean that the government will be disappointed? The banks can be controlled by the government with the help of the central bank in Israel. Also customers of the bank using bitcoin will pay tax in a way they will not be able to escape paying the tax, so they are helping the government.

Bitcoin users in Israel are going to have the support of their government over the use of Bitcoin since it is now approved operational moved that government have allowed Leumi bank to allow they are users have access to the integration they have with Galaxy upon every other crypto related activities they may wanted to do.

[Alpha Marine]

1st. they are Israel based
2nd. trusting a third party with your coins

The second point is enough. No matter the country, trusting a third party with your coins is not a good idea.
The fact that it's an Israeli company has nothing to do with it. You have no idea how many products or services you use are owned by an Israeli. Europeans, Africans, Americans and Asians all use services by Israelis without even knowing. I doubt people even care about where their product is from before they use it. They just focus on which they can afford and which they prefer.
But the idea of a bank offering Bitcoin related service is so strange to me, escpecially because in my country, banks are restricted to stay away from Bitcoin and crypto. The relationship between Banks and crypto has become so weird that even if thing change, I still would not let any bank know the money coming into my account was related to crypto.

[PostQuantumBTC]

2 reasons this is negative

1st. they are Israel based
2nd. trusting a third party with your coins

This is a bank that is based in Israel and the service is for people living in Israel so this is not a negative part of it at all.

Trusting third party is a disadvantage but anyone that like self-hosted wallets will go for it having complete  control of their bitcoin. This is what I prefer than to let another party to hold my bitcoin for me.

[retreat]

Still, all transactions and trades are not conducted on-chain, but rather within the Bank Leumi and Galaxy Digital systems. This means that users do not truly own Bitcoin, but only have exposure to Bitcoin price. For people who want to invest and are not too concerned with self-custody, this might be convenient for them because they don't need to create a separate exchange account just to invest in Bitcoin and altcoins. However, for people who care about self-custody, this is not a particularly appealing thing, since they are not actually holding Bitcoin in their wallet.

[internetional]

But I'll say it's still a good initiative because it tends to promote bitcoin adoption. Who knows, maybe with time more people over there will understand the original purpose of bitcoin and switch more to privacy wallets that won't hold your coins until you provide your  KYC information.

I agree. My ex-wife bought her first bitcoins back in 2017 on LocalBitcoins and just left them sitting there. Then in 2022, when LocalBitcoins stopped serving customers from her country, she was forced to move her bitcoins into self-custody.

If this bank ever decides that it's no longer profitable to support bitcoin custody (for example, due to the risk of AI-driven hacks), it might also ask its clients to withdraw their funds, pushing them toward self-custody.

Personally, I think this scenario is highly probable. The hype surrounding bitcoin has long since faded, so this venture won't bring the bank any significant profits. Sooner or later, during some round of cost-cutting, it will get the chop.

[BlackHatCoiner]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

Of course it's at the expense of your privacy. You're literally buying it through a traditional bank. That means full KYC, AML, and a direct pipeline of your portfolio data straight to the tax man.

Banks are not your friend. If you actually care about your privacy you should stick with Bitcoin for what it is and practice self-custody, while trading peer-to-peer.

[bitbollo]

Italy has the first bank to accept directly bitcoin and integrate the payments.
Despite the harsh legislature they are still in operations! and I would say this could become a nice way to use directly btc.
It couldn't be trusted blindly.
There is always the risk once receing funds and with new MICAR DAC8 rules it was pretty evident there are many new regulatories hurdles...