RAKBANK and Bitpanda Launch First Regulated Crypto Trading Service in the UAE
The National Bank of Ras Al-Khaimah (RAKBANK) has partnered with European digital asset platform Bitpanda to introduce the first regulated cryptocurrency trading service for retail clients in the United Arab Emirates. This initiative allows RAKBANK customers to buy, sell, and hold digital assets directly in UAE Dirhams (AED) through the bank's existing mobile application, marking a significant development for the region's financial sector.
A Landmark Partnership in UAE Finance
This strategic collaboration establishes RAKBANK as the first traditional bank in the UAE to integrate regulated cryptocurrency services directly into its core retail banking offerings. The service leverages Bitpanda’s robust technology platform whilst operating under the full regulatory oversight of Dubai’s Virtual Assets Regulatory Authority (VARA).
According to Raheel Ahmed, Group CEO of RAKBANK, the partnership is aligned with the bank's goal of providing a "more seamless crypto journey" for its customers, emphasising efficiency, security, and accessibility.
Key Features of the Service
The new platform is designed to simplify the process of investing in digital assets for UAE residents by addressing common barriers to entry.
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Seamless Integration: Customers can access the trading service directly within the RAKBANK mobile app, using their existing bank accounts to fund transactions.
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Local Currency Transactions: By enabling trades to be settled directly in UAE Dirhams, the service eliminates the need for foreign currency conversions and associated exchange fees, which often add complexity and cost for investors.
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Access to Major Cryptocurrencies: The platform allows users to trade prominent digital assets, including Bitcoin (BTC), Ethereum (ETH), and XRP.
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Phased Rollout: The service is initially being offered on an invitation-only basis, targeting high-net-worth clients. A broader rollout to all retail customers is planned for the coming months.
Regulatory Framework and Market Implications
The service operates through Bitpanda’s locally licensed entity, "Broker MENA," ensuring full compliance with the stringent framework established by VARA. This regulatory clarity is crucial for building investor confidence and fostering a secure environment for digital asset trading.
The launch is expected to accelerate the mainstream adoption of cryptocurrencies within the UAE by providing a trusted and straightforward entry point for retail investors. This move reinforces the UAE's ambition to become a leading global hub for financial technology and digital innovation, potentially attracting further investment and talent to the region. The partnership between a major bank and a regulated fintech firm may also serve as a blueprint for other financial institutions in the Gulf.
