A UAE’s government-owned bank, Ras Al Khaimah joined hands with a crypto service provider Bitpanda Technology Solution. This collaboration enables RAKBANK to get into the market and sell and buy in the available digital assets making it among the leading firms in the digital asset market.
The agreement will allow RAKBANK customers to engage in a range of industries that involve the use of digital assets once the proposed use is approved by the Central Bank of the UAE. Hoping that this initiative will offer, some of the most extensive digital asset services in the UAE market.
While speaking to a crypto firm RAKBANK expressed its vision of promoting access to digital assets through banking channels and their chief customer officer Dongjun Choi said:
We believe digital assets represent one of the future ways for customers to manage their finances more efficiently and securely.
The partnership was announced by both parties, but it is still under approval from the Central Bank of the United Arab Emirates. Dongjun Choi expressed that this partnership will cover the gap in the market. He believes that a proper banking channel is required for the proper regulation of crypto assets, and the company aims to provide a broader platform to the customers.
The partnership will help the bank, as there is no need for the creation of in-house infrastructure for digital assets. The company CEO CEO Lukas Enzersdorfer-Konrad stated that they want to help the bank achieve its milestone as they are pioneers in providing crypto services in the UAE.
In February 2023, Ras Al Khaimah (RAK), one of UAE’s seven members, revealed the works on launching a specifically designated free zone for digital assets. This is constituted to allow the businessmen to exercise full ownership of their businesses with the added possibility of enjoying special tax incentives and policies.
UAE’s Crypto Adoption Trend Continues
On July 31, the UAE based exchange M2 reported the addition of a new feature which allowed its clients to purchase or sell Bitcoin (BTC) or Ether directly U.A.E. bank accounts. The team has informed Cointelegraph that this integration increases the crypto adoption within the region because it brings openness.
On the other hand, a Dubai court has recently legalised using crypto to pay for salary. On Aug 16, UAE lawyer Irina Heaver advised a crypto site that the decision may point to UAE embracing crypto in employment contracts.
