RAKBANK, a government-owned bank, partnered with Bitpanda to develop a digital asset management platform for UAE citizens.
The United Arab Emirates Central Bank must approve the new digital asset management platform.
RAKBANK affirmed its support for digital assets in a statement, calling them the “future.” Dongjun Choi, the group chief customer officer of RAKBANK, stated:
“We believe digital assets represent one of the future ways for customers to manage their finances more efficiently and securely.”
The team clarified that even though the cooperation has already been announced, the platform still awaits Central Bank of the United Arab Emirates (CBUAE) certification.
Addressing a “gap” in the Industry
The alliance also seeks to “fill the gap in the market,” according to Choi. The CEO feels that a regulated banking platform that deals with digital assets is necessary and that its goal is to give clients access to more opportunities related to digital assets.
Thanks to the partnership, the bank won’t have to create an internal digital asset infrastructure.
CEO of Bitpanda Technology Solutions, Lukas Enzersdorfer-Konrad, stated that the company favours RAKBANK’s goals because it has a long history of leading the way in cryptocurrency innovation in the United Arab Emirates.
One of the seven emirates of the United Arab Emirates, Ras Al Khaimah (RAK), declared in February 2023 that it intended to establish a free-trade area specifically for digital assets in the nation. Free-trade zones allow entrepreneurs to benefit from various tax and regulatory structures for all or 100% of their businesses.
Sheikh Saud bin Saqr Al Qasimi, the ruler of RAK, officially opened the RAK Digital Assets Oasis (RAK DAO) in October 2023. This economic free zone in the United Arab Emirates focuses on blockchain, artificial intelligence, and Web3 cryptocurrency.
The UAE is still Adopting Cryptocurrencies.
Residents in the UAE will now be able to buy and sell Bitcoin (BTC$58,067) and Ether (ETH$2,577) straight from their UAE bank accounts, according to a July 31 announcement by UAE-based exchange M2. This improves cryptocurrency accessibility in the area.
In the meantime, cryptocurrency has been accepted by a Dubai court as a legitimate way to pay salaries. UAE attorney Irina Heaver said on August 16 that the decision demonstrates the nation’s increasing embrace of cryptocurrencies in employment contracts.