A significant development in the United Arab Emirates’ financial landscape has occurred, with the Ras Al Khaimah National Bank (RAKBANK), a government-affiliated institution, pioneering retail cryptocurrency trading services. This marks a first for traditional banking within the UAE.
In a formal declaration released Tuesday, the bank unveiled a cryptocurrency brokerage feature accessible through its mobile application. This allows RAKBANK customers the ability to directly buy, sell, and exchange digital currencies using their UAE dirham accounts.
“We recognize the immense opportunity this innovative solution presents to our valued customers within the UAE,” stated Raheel Ahmed, Group CEO of RAKBANK. “We firmly believe that they deserve a more streamlined, efficient, and secure journey when buying, selling, and exchanging cryptocurrencies, all within a fully regulated framework and denominated entirely in AED [dirhams].”
This novel service is technically supported by Bitpanda, an Austrian firm specializing in digital asset technology. Trade executions and related processes are managed by Bitpanda Broker MENA DMCC, an entity regulated by Dubai’s Virtual Assets Regulatory Authority (VARA).
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Crypto Trading Supported by Major Bank
RAKBANK emphasizes that its clients can now engage in crypto transactions without the need to transfer funds to third-party exchanges or undertake currency conversions, thereby eliminating foreign exchange-related fees. The system leverages Bitpanda’s established infrastructure for trade execution and secure digital asset custody.
“We are exceedingly proud to be at the forefront as the first conventional bank in the UAE to offer straightforward, secure, and regulated access to a top-tier digital asset platform,” remarked Ahmed.
Currently, access to the crypto trading service is limited to an invitation-only basis, with plans for a wider public rollout expected in the near future.
Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, hailed the collaboration as “a momentous occasion for digital assets in the region.” Bitpanda possesses regulatory approval in various European jurisdictions and has established institutional partnerships with prominent financial institutions, including Deutsche Bank, N26, and Raiffeisen Bank.
Cointelegraph has made contact with RAKBANK for comment but has yet to receive an official response as of the time of this publication.
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RAKBANK Introduces Crypto Platform to UAE Market
During the previous year, RAKBANK forged a partnership with Bitpanda to develop a comprehensive digital asset management platform for residents of the UAE. The bank has publicly expressed its view that digital assets represent the “future” of finance, highlighting their potential to offer customers a more efficient and secure method for managing their financial resources.
RAKBANK’s strategic move into the cryptocurrency sphere aligns with the broader ambitions of the UAE to solidify its position as a premier hub for blockchain technology and cryptocurrency ventures.
The Dubai Multi Commodities Centre (DMCC) free zone has successfully attracted over 600 cryptocurrency-related enterprises. A growing number of businesses are also establishing operations in the Dubai International Financial Centre (DIFC) and the One Central district, as the country proactively strengthens its standing as a leader in the realm of digital finance.
Just last month, the Dubai Financial Services Authority (DFSA), the regulatory body responsible for overseeing financial activities within the Dubai International Financial Centre, granted approval to Ripple’s RLUSD stablecoin.
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