Until recently, accessing cryptocurrencies was limited to specialized exchanges and platforms. However, in the UAE, banks are simplifying the process of buying and selling crypto.
RAKBANK has become the first traditional bank in the Emirates to offer crypto services, launching in collaboration with Bitpanda, a prominent European crypto platform. RAKBANK customers can now effortlessly buy, sell, and hold top digital currencies like Bitcoin, Ethereum, Solana, and XRP directly through the RAKBANK mobile app.
Vikas Suri, Managing Director and Co-Head of Wholesale Banking at RAKBANK, stated at the launch: “We noticed a global, as well as UAE-specific, interest in crypto investments. The existing methods were complicated, unregulated, and costly. We aimed to make it straightforward for our UAE residents to invest in crypto assets safely and under regulation.”
According to Suri, it’s all about accessibility. While Bitpanda provides the backend infrastructure, RAKBANK acts as the trusted portal. Significantly, Bitpanda is regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), ensuring customer confidence.
Nadeem Ladki, Global Head of Bitpanda Technology Solutions, highlighted the partnership as a blend of complementary strengths. “We wanted to partner with a bank that could act swiftly and had a wide retail customer base. RAKBANK was a perfect match.”
The partnership is also focused on creating educational content to assist first-time investors in navigating the complexities of digital assets. With Emirates NBD’s digital bank Liv already offering crypto services, more banks are expected to follow suit.
Trust in Banking
Major crypto exchanges like Binance, Bybit, and OKX have been the primary entry points for investors but have also been involved in scandals, including hacks and frauds. This history has created a trust gap. A survey revealed that nearly 50% of UAE retail investors lack full trust in crypto exchanges, while 67% of UAE residents are interested in crypto investments in the near future.
Shireen Kapoor, founder of ASK Consultancy, noted: “Most people inherently trust their banks more than crypto exchanges. Banks are perceived as stable, secure, and backed by regulators, which is crucial.”
Integrating crypto into banking apps reduces this trust gap. Customers can transact without moving funds to unfamiliar platforms or managing private keys, making buying crypto as simple as paying a bill.
For newcomers, this development could be groundbreaking. Crypto can be daunting with its complex interfaces, jargon, and irreversible mistakes. But now, a beginner can log into the RAKBANK app, select “Crypto,” and purchase Bitcoin just as easily as topping up a mobile wallet.
By collaborating with Bitpanda, RAKBANK establishes itself as a first mover in a region poised to become a global digital asset hub. As Suri mentioned, the bank has often been a pioneer in this market, with crypto as the latest milestone.
Should you buy crypto through your bank? It depends on your objectives. For first-time digital asset investors, a regulated bank app might be more reassuring than a crypto exchange. While the selection of coins and tokens might be limited and fees higher, the trade-off comes with added security and peace of mind.
The Future of Finance
Kapoor best articulated it: “The RAKBANK and Bitpanda partnership is not just a headline event. It offers a glimpse into how crypto will integrate with traditional finance, especially in a forward-thinking market like the UAE.”
Before You Invest
Consider these three critical questions before starting your crypto journey:
Do I understand what I’m purchasing?
Crypto differs from stocks or gold. It’s a new asset class with unique risks, from blockchain technology to market volatility. Beginners should understand what Bitcoin or Ethereum truly represent and not be influenced by hype.
Can I afford to lose this money?
Crypto markets are unpredictable. You could double your money or lose most of it overnight. Experts suggest only investing what you can afford to lose without affecting your lifestyle or financial security.
What is my investment strategy?
Are you planning to trade daily, hold for years, or just experiment? Having a clear strategy helps prevent panic selling during downturns or chasing quick gains.
