Bitex has officially launched as the United Arab Emirates’ (UAE) newest digital asset exchange. The Dubai-based trading platform will initially support bitcoin core, bitcoin cash, ethereum and litecoin. Bitex also announced the launch of a cryptocurrency wallet that offers an additional cash deposit service, according to media reports.
Changes in Regulation Spur Development
Monark Modi, chief executive officer of Bitex UAE, said the exchange will provide multiple payment options including bank transfer and credit or debit cards. The cash deposit service allows users to schedule a cash pickup, with funds immediately deposited in their accounts and available for trading within 24 hours, he explained.
“Recent changes in UAE regulation have made today the perfect time to seize the opportunity to introduce a new, secure, professional trading platform,” Modi is quoted as saying by the Bahrain news portal Trade Arabia on Nov. 22. He said the UAE government has demonstrated progressive leadership with its Blockchain Strategy 2021, which has “laid the groundwork for digital assets becoming more accessible” in the Gulf state.
Modi stated:
"UAE residents have been calling out for more options to securely buy and sell digital currencies … while residents have been able to use international trading platforms for some time, having access to a local exchange is far more convenient. Trading via a UAE-based company allows customers to easily deposit local currency rather than first having to exchange it for a more widely-accepted currency."
Crypto and Blockchain Hotspot
In June, the Financial Services Regulatory Authority, regulator of Abu Dhabi Global Market, released a framework for regulating crypto assets and their attendant activities. The framework addresses the potential risks associated with cryptocurrency transactions, including alleged financial crime, money laundering, consumer protection and technology governance. The guidelines have been viewed as testament to the UAE’s progressive attitude towards blockchain and virtual currency use and adoption.
According to Trade Arabia, Bitex UAE has said it uses a multi-signature HD wallet to store cryptocurrency. A three-key system increases security, the company claimed, requiring two of the three keys in order to access funds. “The first key is securely stored by Bitex UAE, the second is stored with Bitex UAE’s wallet partner and the third is a recovery key,” it said separately on its Linkedin page.
The UAE is developing into a hotspot for blockchain and cryptocurrency adoption. Its Blockchain Strategy “aims to position Dubai as a leader in this global technology.” The country has also announced plans to operate its own cryptocurrency by the year 2020.