If you’re looking to get in on the cryptocurrency craze in the UAE, a local start-up has just made things a little easier.
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ArabianChain, a blockchain-based start-up has launched a new cryptocurrency trading platform specifically for those living in the UAE. The platform, called Palmex, allows users to deposit and trade digital currencies such as Bitcoin, Ethereum, Ripple, and even ArabianChain’s own DubaiCoin.
There are a couple of local cryptocurrency exchanges in the UAE – the other main one being BitOasis. Palmex says that its main selling point will “low, competitive fees” to deposit, withdraw and trade cryptocurrencies. A quick look on the website suggests that it’s currently free to withdraw and deposit most of the major cryptos, but ArabianChain has already said that, pretty soon, there will be fees attached to most transactions.
“The demand to trade and issue digital assets has grown exponentially with the phenomenal surge in valuation of cryptocurrencies like Bitcoin and the rapid evolution of blockchain technology,” said Mohammed Alsehli, founder and CEO of ArabianChain.
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“The regional market is ripe and hungry for a user-friendly platform that makes it possible for them to buy and sell in a secure environment.”
In terms of how you can go about trading in cryptocurrencies, you’ll need to create an account, and then, if you want to trade large amounts, verify yourself with a passport copy and a few other documents.
Now, this is the case on most other cryptocurrency exchanges – even international ones. Alsehli reckons, though, that regional traders will want a local company to deal with.
“It’s usually a case of convenience, especially when we talk about fiat currencies involved. When you want to deposit cash, for example to Switzerland rather a system that exists here in the region, it’s way easier,” he said.
“If you’re based in the UAE, it’s just a matter a day or so…or a couple of hours. You have a legal entity in the region you can actually reach and approach, a company and face that you know. It adds an element of trust.”
Cryptocurrency trading has become a big business over the last 12 months or so, with millions of normal consumers signing up to trading platforms to try play the exchange markets. It should be noted that this comes with a large element of risk.
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What’s more, the value of most cryptocurrencies have taken a hit in recent weeks, suggesting to some that there may not be all that much money to be made in them. This piece from The Guardian, for example, advises strongly against ‘investing’ in Bitcoin and other cryptocurrencies.
Still, for those willing to take the risk, it seems like Palmex could be a useful local resource.