It Will Be Possible to Trade Bitcoin and Cryptocurrency in Dirhams Very Soon in the United Arab Emirates (UAE).
Kraken, one of the world’s largest cryptocurrency exchanges, has formed a partnership with the National Bank of Ras Al Khaimah (RAKBANK) to provide investors in the United Arab Emirates with the opportunity to trade virtual assets for dirhams using their existing bank accounts.
This will make it possible for UAE-based customers of Kraken, which is licensed by Abu Dhabi Global Market (ADGM), to fill their cryptocurrency accounts using local money transfers from any bank in the UAE. This is because RAKBANK is governed by the Central Bank of the United Arab Emirates.
At the moment, residents of the UAE who trade virtual assets are required to get funding for their transactions from financial institutions or foreign correspondents located outside of the UAE.
managing director for Kraken Mena said:
“Investors in the UAE will soon be able to directly participate and invest in the crypto market,”
Consequently, they are subject to asset governance governed by a foreign jurisdiction, have extended lead times (24 hours), and face significant expenses and fees associated with the conversion of foreign currency.
By using this approach, citizens of the UAE will be able to fill their accounts more quickly and at lower rates, all while staying within the UAE’s legal authority.
In April, Kraken was granted a regulatory license to operate in Abu Dhabi, while the world’s largest cryptocurrency exchange, Binance, acquired an in-principle clearance to become a broker-dealer.
An advanced legislative framework for protecting investors and setting worldwide standards for virtual asset sector governance was enacted by the Emirate of Dubai in March. It aims to encourage responsible corporate development in the emirate.
Due to cryptocurrency’s extreme volatility, risky nature, and potential for illegal activity, central banks throughout the globe have been hesitant to embrace it.
According to a survey, 21 percent of UAE respondents, including 20,000 people in 18 countries, have intentions to trade crypto in 6 to 12 months. This is the third highest rate after India and Indonesia.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.