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Are Bitcoin And Cryptocurrency Legal In Dubai?

There’s no doubt that cryptocurrencies like Bitcoin have been an absolute game-changer!

Especially if you consider how this phenomenal industry has transformed the lives of geeky tech-savvy early adopters who lived in their folk’s basements into billionaires with oodles of boodle!

Bitcoin and cryptocurrency are legal in Dubai due to progressive and business-friendly crypto laws.

Establishing the Dubai Virtual Assets Regulatory Authority also assures leading cryptocurrency companies that they can safely trade virtual crypto tokens in the UAE.  

So, if you want to know whether you can legally trade Bitcoin and other cryptos in Dubai – read on!

New Dubai Crypto Currency Law

Clearly, the United Arab Emirates is on a mission to be a world leader in rapidly evolving technologies like blockchain and cryptocurrencies. So, it’s no wonder that crypto companies have been flocking to Dubai in droves!

Fortunately, you can now legally and safely trade Bitcoin and any cryptocurrencies of your choice in the UAE due to their progressive crypto law, coupled with the establishment of the Dubai Virtual Assets Regulatory Authority (VARA).

VARA plays a pivotal role in Dubai’s cryptocurrency trading sector as it oversees crypto companies and the sale of virtual crypto tokens, providing security and transparency in the previously unregulated and highly volatile crypto market.

The UAE’s sophisticated and business-friendly crypto law has attracted many leading crypto service providers and investors to Dubai.

And Dubai’s open-minded stance concerning crypto trading is in stark contrast to other countries like China which have banned cryptocurrency trading to stabilize their economy and combat financial crimes.

Cryptocurrencies like Ethereum (ETH), Bitcoin (BTC), or Tether (USDT) are also now widely used to pay for visas and trade licenses UAE government’s licensing company KIKLABB.

Leading Crypto Currency Players Are Moving To Dubai

The UAE’s innovative crypto-friendly trading laws have opened the floodgates, so to speak, for leading companies to such an extent that most have moved their established headquarters to Dubai.

In the fullness of time, the Dubai World Trade Centre will become one of the world’s leading crypto zones as most cryptocurrency operators will be headquartered there.

Therefore, it’s no surprise that reputable global cryptocurrency exchange companies like Bybit are relocating their headquarters from Singapore to Dubai and that Swiss companies like FTX Europe will also establish a regional branch in that region.

It is also evident that Dubai’s effective charm offensive is bearing fruit as leading US technology companies, like Ripple, are also moving their headquarters to the region.

Although it’s interesting to note that several leading crypto companies have moved their headquarters from Singapore to Dubai as their hopes for a thriving crypto zone in Asia are slowly waning, especially following China’s ban on crypto trading.

In stark contrast, Dubai has attracted several world-class crypto companies to the UAE as, Singapore only granted trading licenses to a limited number of crypto groups which by default has stifled business in that region.

So, it’s clear that the “cryptocurrency caravan,” which includes leading companies like Crypto.com, is heading to the Gulf due to Dubai’s open-minded and accommodating business policies.

To illustrate my point, Binance, one of the world’s largest crypto trading firms, moved to Dubai from Singapore due to the region’s business-friendly crypto policies and regulatory bodies that oversee the industry.

Although, it’s essential to note that, like any business, cryptocurrencies are vulnerable to exploitation and are often used to launder money.

Therefore, the Financial Action Task Force has placed the UAE on their global money laundering grey list to prevent the flow of illicit funds.

While cryptocurrency trading can be used for unlawful purposes, it’s clear that Dubai and the UAE at large are making a concerted effort to create a trustworthy crypto hub that is regulated yet flexible enough to promote growth throughout the Middle East.

Where Can I Buy Crypto Currencies In Dubai?

Fortunately, you don’t have to be an ultra-tech-savvy person to invest in the cryptocurrency market.

Moreover, due to the sector’s spectacular rise in value compared to traditional stock market investments, this phenomenal growth trajectory is only likely to continue.

However, with so many reputable crypto trading companies in Dubai, it’s often difficult to find one that is user-friendly and affordable, especially if you have limited funds to speculate with. So, with that said, here are a few options to consider:

eToro: Small Crypto Investments

Suppose you are new to crypto trading and want to start with a small investment.

In that case, you will need to open an account with a licensed online broker like eToro, which is an excellent option if you have a limited understanding of trading in digital currencies.

You can open a crypto account in a few minutes and kickstart your investment with as little as $50, which is easy as you can use your debit/credit cards, online baking, or e-wallets like Paypal to open an account.

It’s a cost-effective way of investing in digital currencies as eToro charges a mere 0.5% for AED currency deposits which only increases to 0.75% once you start trading in various digital currencies.

While you can purchase Bitcoin for as little as $10, eToro also supports 43 virtual tokens like Dogecoin, XRP, Ethereum, and Litecoin.

However, if you should feel more comfortable leaving your investment in the capable hands of professional crypto traders, you could invest in CryptoPortfolios or Copy Trading.

Coinsfera: Cash Crypto Trades

Global crypto exchange company, Coinsfera has several OTC exchange branches in Dubai where you can legally purchase digital currencies like Bitcoin, USDT, Ethereum, and USDC with cash, in currencies ranging from  AED, EUR, and USD to GBP.

Buying crypto at Coinsfera is convenient if you have a lot of surplus cash or don’t have a credit card or bank account.

Alvexo: Experienced Crypto traders

Alvexo is an excellent option if you are a seasoned short-term crypto trader. You can buy and sell in any digital currency without taking ownership of any virtual tokens.

For example, Bitcoin can be traded against other currencies like Ethereum, Litecoin, US Dollars, and Euros.

This sophisticated online crypto trading platform also allows you to short Bitcoin with sell orders if you suspect that Bitcoin prices will devaluate. In addition, it will grant you access to CFDs for indices, stocks, forex, and other commodities.

Written by DBLY

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