The cryptocurrency exchange Bitpanda has signed an agreement with one of the oldest banks in the United Arab Emirates (UAE), RAKBANK, marking its first expansion into the Middle Eastern market.
Partnership with RAKBANK
The agreement between UAE-based RAKBANK and Vienna-headquartered cryptocurrency exchange Bitpanda aims to expand crypto offerings in the region. According to a press release on August 19, the partnership will allow UAE residents to manage their crypto holdings through the Bitpanda platform.
Innovations and Crypto Services
Although the collaboration is still pending approval from the Central Bank of the UAE, RAKBANK plans to give its customers the green light to various digital asset use cases and payment options once the deal is finalized. Bitpanda CEO Lukas Enzersdorfer-Konrad noted the UAE’s ambition in the crypto space, expressing hope that the collaboration would transform crypto access for millions in the UAE and lay the groundwork for future innovation.
Legal and Market Aspects
RAKBANK’s engagement in the crypto space is not new. In 2020, the bank partnered with Bangladesh’s Bank Asia to enable money transfers between accounts at the two institutions using Ripple’s technology. The latest deal follows a significant legal precedent in Dubai, where the Court of First Instance recently recognized cryptocurrency as a valid form of salary payment. The court mandated the employer to fulfill the contractual obligation to pay over 5,000 EcoWatt (EWT) tokens, affirming the legitimacy of cryptocurrency payments in employment contracts.
The partnership between Bitpanda and RAKBANK reflects the growing interest in cryptocurrencies in the region and the potential for innovation in this field. The anticipated approval of the deal could mark a significant step in the development of crypto services in the UAE.
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