UAE's Ruya Bank Becomes the First Shari'ah-Compliant Institution to Offer In-App Bitcoin Trading

Summary:
Ruya Bank, an Islamic financial institution in the UAE, has launched in-app Bitcoin trading, making it the world’s first Shari'ah-compliant bank to offer this service. Collaborating with the regulated digital asset provider Fuze, Ruya enables its customers to engage securely and ethically in cryptocurrency transactions.

Key Takeaways

Ruya Bank has introduced in-app Bitcoin trading for its customers.
It is the first Shari'ah-compliant bank globally to offer this feature.
The service enhances Ruya's ethical investment options.
The UAE crypto market is experiencing rapid growth, with significant increases in digital asset activity.
Other financial institutions in the UAE are also expanding their crypto services to meet rising consumer demand.

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Introduction of In-App Bitcoin Trading

UAE's Ruya Bank has made a landmark move by enabling in-app Bitcoin trading, allowing customers to effortlessly buy and sell Bitcoin directly through its mobile application. This innovation positions Ruya as the first Islamic bank worldwide to provide a Shari'ah-compliant platform for cryptocurrency transactions. The new feature is powered by Fuze, a regulated digital asset infrastructure provider based in the UAE.

This development is a pivotal moment for Islamic digital banking in the area. According to Ruya, this new offering enhances its ethical investment portfolio and ensures customers can participate securely and in compliance with Islamic finance principles in the burgeoning digital asset market. The partnership with Fuze facilitates the integration of regulated virtual asset technology, ensuring that the system is secure, user-friendly, and meets the increasing demand for responsible digital investment tools in the UAE.

Growth of the Cryptocurrency Market in the UAE

The launch of this trading feature coincides with a period of robust growth in the UAE's cryptocurrency activity. According to Chainalysis’ 2024 Geography of Crypto report, cryptocurrency inflows into the UAE surpassed $30 billion between July 2023 and June 2024, marking a 42% increase compared to the previous year.

Additionally, the report highlights a significant rise in decentralized finance (DeFi), with an impressive 74% increase in value received via DeFi platforms. During the same timeframe, decentralized exchange (DEX) activity also experienced remarkable growth, expanding from approximately $6 billion to $11.3 billion—an increase of 87%. Analysts attribute this rapid expansion to clearer regulatory frameworks established by Dubai’s Virtual Assets Regulatory Authority (VARA) and the Securities & Commodities Authority (SCA).

Increased Adoption of Cryptocurrency Products

This announcement follows a trend of increasing digital asset offerings from financial institutions within the UAE. Earlier this month, Mashreq Capital, located in the Dubai International Financial Centre, launched BITMAC. This new mutual fund provides investors with exposure to not just Bitcoin but also equities, fixed income, and gold through exchange-traded funds (ETFs). The fund is designed as a diversified portfolio that undergoes systematic rebalancing to cater to retail investors.

Moreover, banks like RAK Bank and Liv Bank have also rolled out crypto trading services in partnership with external exchanges, in response to a growing appetite for cryptocurrency by their customers.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views shared in this article may reflect the author's personal opinions and do not necessarily represent The Crypto Basic's stance. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.