Is Bitcoin legal in the UAE?
Is bitcoin legal in UAE, read on and you will find what you are looking for. Bitcoin is the first currency that was developed and launched in 2009, 13 years ago from now. Bitcoin is a decentralized digital currency that can be transferred on a peer-to-peer blockchain. Bitcoin is not based on any real project trying to provide a real benefit for the year, but being the first digital currency gained popularity and great acceptance among the masses of investors wishing to collect more profits and returns. Bitcoin has become the largest physical store of value, with its price gradually rising and maintaining very high price levels.
Is Bitcoin legal in the UAE?
Based on Circular D.7.3 of the Regulatory Framework for Stored Values and Electronic Payment System, issued by the Central Bank of the United Arab Emirates, as of January 2017, all transactions in “virtual currencies” are prohibited. Therefore, the answer to the question of whether bitcoin is legal in the UAE is no.
But even though UAE regulations say bitcoin is illegal in the UAE, the government allows citizens to buy and trade bitcoins. The Emirati investor is free to own Bitcoin and any other cryptocurrency, deposit and trade it on the stock exchange, or even transfer and withdraw it in Emirati dirhams.
Cryptocurrencies are not commodities or physical tangible assets. These currencies are outside the traditional financial organization, and they only take digital form by default. If you lose money, the UAE does not provide any financial insurance on these assets and that is why they are warning against it.
Regulation of legal bitcoin regulation in UAE
Cryptocurrencies in the UAE are regulated by the Financial Services Regulatory Authority, the Securities and Commodities Authority, and the Dubai Financial Services Agency. The Central Bank of the UAE considers cryptocurrency trading to be highly risky, which is why all parties involved in the transaction must follow strict compliance with the UAE AML/CFT laws.
There is currently no legal unified regulation regarding cryptocurrencies in the UAE such as Bitcoin, but trading with virtual assets such as Bitcoin is still illegal. After the latest statement from the Central Bank of the UAE saying that crypto or virtual assets are not currently accepted or recognized as legal tender in the UAE, the only valid currency in this country that is recognized by the Central Bank is the UAE Dirham.
While the legality of virtual currencies remains murky, cryptocurrency exchanges such as BitOasis have been licensed to operate in the global crypto market. As of now, UAE nationals are allowed to legally buy, sell and hold cryptocurrencies like bitcoin as investments, but they are not able to purchase any physical goods with them.
Buy bitcoin in the UAE
The UAE aims to become a global hub for cryptocurrency and blockchain technology, with a market capitalization of nearly $1.4 trillion, up 86 percent year-on-year so far. Regulators in the UAE are adopting new legal frameworks and regulations that make the country open to new startups in the crypto and blockchain space. All this indicates that there is a great opportunity for investors who want to buy bitcoin in the UAE. Here are some of the reasons why buying bitcoin in the UAE today is urgent and beneficial:
High inflation after covid
Global inflation rates are peaking as a result of the post-COVID economic stimulus regimes implemented by governments and central banks around the world during 2020 and 2021.
Low bitcoin purchase fees
Users can buy bitcoin in the UAE for as little as 2 units of their local currency with Coinbase and as little as the $10 minimum trading requirement with eToro.
High returns on investments
At the time of writing, Bitcoin is up again by 10% over the past two days and is down to over $42,000. Gains of 10 percent or more on a daily basis are quite normal for Bitcoin and they always promise high returns for investors who invest at the right time.
How to buy cryptocurrency in the UAE
If you want to buy cryptocurrency in the UAE, follow these steps:
Step 1: Sign up for an exchange or brokerage account with a trusted broker so that you can buy cryptocurrencies in the UAE securely. Users need to open a trading account with a regulated and accredited broker like eToro or an accredited digital exchange like Binance, Coinbase or Kraken.
Step-2: Deposit funds. After verifying your trading account, you will be allowed to deposit funds using direct bank transfer or credit card. Funds deposits take up to 3 days to appear in your account.
Step-3: You can now do a digital currency purchase in the UAE. After your funds appear in your trading account, you can buy cryptocurrencies offered by the exchange or broker using their trading platform. You are even allowed to buy fractions of each cryptocurrency.
Step 4: The most secure way to keep your cryptocurrency is to store it in an e-wallet with a private key. This way you also keep your purchases safe if the broker or exchanges get hacked or go out of business.
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