February 29, 2024
Blockchain & Cryptocurrency

Kraken and Rakbank Partners to Enable UAE Crypto Trading in Dirham

Kraken and Rakbank Partners to Enable UAE Crypto Trading in Dirham :

Kraken and Rakbank Partners to Enable UAE Crypto Trading in Dirham

Kraken, a leading cryptocurrency exchange, has partnered with Rak Bank to enable crypto trading through Dirhams. Kraken is a global crypto exchange that facilitates the trading of crypto. Kraken was the first global exchange to obtain a full license from the Abu Dhabi Global Market. RAKBANK, on the other hand, is the trading name of the National Bank of Ras Al-Khaimah PJSC, a commercial bank regulated by the Central Bank of UAE.

Impact of the Partnership

The collaboration between both entities would allow residents of the UAE to trade crypto in dirhams through their local bank accounts. In essence, crypto traders in UAE would now be able to fund their crypto accounts through fund transfers from local accounts.

This partnership constitutes a major development for crypto trading in the UAE. Previously, UAE residents who intended to trade crypto had to use banks of foreign correspondents outside the UAE. Since these traders had to resort to foreign accounts, they typically incurred high foreign exchange costs and fees. Furthermore, these traders had to endure the long lead times associated with cross-border transactions.

Given this background, it is not difficult to see how this collaboration would change the crypto trading landscape in the UAE. Residents of the UAE would not be able to fund their crypto accounts much faster. Similarly, they would incur fewer costs and can now avoid the hassle of securing a foreign account. With the buzz surrounding virtual assets in UAE, one can see this partnership further driving crypto adoption.

Speaking on the partnership, Raheel Ahmed, the CEO of RAKBANK, stated that they are proud to become the pioneer UAE bank to allow Kraken to provide this solution to crypto investors resident in the UAE. He says, “This is an additional step towards our goal of making banking simpler and easier through innovation.”

In a similar fashion, Benjamin Ampen, MD of Kraken MENA, commented on LinkedIn that UAE investors would soon be permitted to directly take part and invest in crypto. This enablement is because the solution is safer, highly safe and effective and lessens costs. In his words, Kraken and Rakbenk partners will achieve the ambition of dirham-denominated crypto trading in the UAE. This act will involve the regulatory supervision of the ADGM.

UAE’s Promising Virtual Assets Industry

Undoubtedly, this collaboration further cements the UAE as an emerging virtual asset trading hub. This much is recognized by the Aby Dhabi Global Market (ADGM). Reflecting on the partnership between Kraken and RAKBANK, Ahmed Jassim Al Zaabi, the chairman of ADGM, explained that the collaboration showcased the thriving virtual asset ecosystem of Abu Dhabi. Furthermore, he added that the development reflects Abu Dhabi’s position as a leading jurisdiction in the region for regulating virtual asset activities.

Ultimately, the partnership between Kraken and RAKBANK is excellent news for the residents of the UAE. The seamlessness of crypto transactions enabled by the partnership is certainly a welcome development and would, no doubt, catalyze even more crypto activities in the country.

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Last Updated on 3 months by newseditor

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