The trading of cryptocurrencies using Emirati money may soon be permitted at a bank in the United Arab Emirates. Using a local Emirati bank account and dirhams, residents of the UAE will be able to trade digital assets according to a deal RAKBANK and Kraken announced on July 18.
As per a press statement from the bank, the action will allow residents of the Gulf state to avoid depending on overseas bank accounts and the associated foreign exchange fees. The bank did not give a specific release date for the trading option.
Online bank RAKBANK is situated in Dubai, while Kraken is a cryptocurrency exchange in the US.
The use of cryptocurrency is expanding in the UAE and the rest of the region. Related to various releases from Bybit and Crypto.com in April, Kraken also unveiled its relocation to Abu Dhabi.
According to CoinMENA’s CEO, Talal Tabbaa, demographics are fueling the Middle East’s cryptocurrency market’s expansion. CoinMENA is a cryptocurrency platform located in Bahrain.
In the interview, Tabbaa referred to the Middle East and North Africa as having one of the world’s youngest demographics, which increases their tendency to rapidly accept new technology.
The issuance of licenses for digital asset exchanges by the Bank of Bahrain and the establishment of the UAE’s Virtual Asset Regulatory Authority, according to Tabbaa, helped pave the way for the development of cryptocurrencies.
For investors and founders who want to get access to this developing asset class, he added that this regulatory certainty is vital.