How to buy real estate in Dubai for cryptocurrency, why BTC is popular, and how the UAE government uses blockchain as part of the development of the country. What are the advantages of implementing the technology and what are the results for the first part of 2023?
Many individuals and businesses involved in the cryptocurrency industry, including traders, investors, IT companies seeking to simplify bookkeeping tasks, mining and staking experts, and NFT designers are relocating to Dubai. The emirate is making concerted efforts to create a favorable environment for these professionals to conduct business and reside comfortably.
In the UAE, the FSRA oversees the regulation of cryptocurrencies and blockchain projects specifically within the Abu Dhabi Global Market (ADGM). This organization offers guidance on cryptocurrencies and monitors the blockchain industry to ensure transparency and prevent money laundering and terrorist financing. In the future, the Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) may also contribute to the regulation of cryptocurrencies in the UAE.
The UAE has a regulatory framework to oversee the storage, use, issuance, and trading of investment tokens, as well as consultations and insurance services. The government controls these processes to ensure compliance with regulations.
As of March 2022, the legal control of digital assets is governed by specific provisions. The Dubai Virtual Asset Regulatory Authority (VARA) was established as a dedicated agency to enforce uniform regulations for the usage of cryptocurrency and to grant licenses as needed. Any companies or freelancers involved in cryptocurrency exchange, transfer, storage, trading, portfolio management, or platform maintenance must obtain the necessary licenses.
Dubai’s tax laws are quite friendly. All tax residents of the city are exempt from paying income tax, regardless of their income level. This also includes cryptocurrencies, which have been exempt from taxation in free zones since September 2021. This makes Dubai an attractive destination for IT businesses and experts looking to promote digitalization in the region.
Attention! From June 1, businesses operating exclusively in the UAE and earning over AED 3 million must pay a 9% corporate tax.
The UAE has incorporated blockchain technology to revolutionize government transactions at the federal level as part of its digital transformation. Various industries, ranging from energy to media, are currently exploring and adopting distributed ledger technologies (DLT) and blockchain.
New industries and a global platform are emerging to facilitate international collaboration. To support this, regulations are being streamlined and government ministries are increasing their online presence. Dubai is one of the pioneering leaders in this effort.
In 2016, the Dubai Blockchain Strategy was introduced through a joint effort between the Smart Dubai initiative and the Dubai Future Foundation. The strategy included a plan for implementing blockchain systems in the city.
Efforts are being made to enhance the work efficiency of state organizations in different domains. One of the pioneers in implementing such a program is DLD. Its benefits include transparency, secure transfer, and the capability to trace document versions during property registration. Dubai has set a goal to eliminate paper documents entirely in the upcoming years. In 2021, Dig was established by Sheikh Mohammed bin Rashid Al Maktoum.
Tudegital in Dubai is responsible for developing and overseeing the implementation of policies and strategies related to information technology, data, digital transformation, and cybersecurity in Dubai. Digital Dubai is an organization that brings together experts in these fields to work towards advancing these areas in the city.
An initiative has been launched in the city to advance the fields of electronic security, statistics, and data. Experts in these areas are coming together from four organizations: Dubai Electronic Security Center (DESC), Dubai Statistics Center (DSC), Dubai Data Establishment, and another unnamed organization.
There are some well-known and significant real estate developers in the UAE who accept cryptocurrency as payment:
It is not possible to directly contact the developer as companies typically conduct transactions with licensed traders and brokers. However, there are various projects available for purchase using digital currency such as Emaar Beachfront by Emaar Properties, The Palm Tower by Nakheel, Bulgari Resorts & Residences by Meraas, Port De La Mer by Meraas, Cavalli Tower by DAMAC Properties, and many others.