Article image: On Bitcoin and Other Cryptocurrencies in the UAE

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All legal relations between local and federal authorities are stipulated in the constitution of the UAE Full version

Bitcoin is an electronic cryptocurrency first introduced by its developer Satoshi Nakamoto in 2009. There is hardly a person in the world who has not heard anything about bitcoin and its mining. Over the past few years, this topic has aroused great interest not only among entrepreneurs, but also among ordinary people around the world.

Bitcoin in the UAE

Bitcoin is the first decentralized digital currency. A network called “blockchain” allows performing transactions from one person to another, that is, without any intermediaries. Bitcoins are created during the mining process. They can be exchanged for goods and services or other currency. At the moment about 100 thousand companies in the area of wholesale trade accept bitcoins.

Since one of the main goals of the UAE is the transformation of the country into the leading financial center of the world, the authorities of the country welcome all financial innovations and do their best to keep up with any changes. Therefore, there is no wonder that cryptocurrency in Dubai has drawn the attention of the authorities. Bitcoin in Dubai can be purchased at one of the international exchanges, for example at Bitcoin Exchange, Trading BTC USD, BTC EUR-CEX.IO, Lake BTC or HitBTC. Cryptocurrency in the UAE can be purchased with the help of a credit or a debit card, Paypal, Srill or another non-cash payment system.

Cryptocurrency in the UAE is represented not only by bitcoin. You can also buy Ethereum, Litecoin or Altcoin. The cost of bitcoin and its ratio to fiat money is constantly changing – it depends on many factors. The purchase of one bitcoin in Dubai currently costs about 11 thousand 500 dollars (the rate is changing very quickly, however).

Legal Status of Cryptocurrency in the UAE

Cryptocurrency in Dubai can be purchased on one of the websites only after the creation of a special wallet. As for the legal status of cryptocurrency in the UAE and bitcoin, in particular, here is what you should know. January 1, 2017, the Central Bank of the United Arab Emirates published “Regulatory Framework For Stored Values and Electronic Payment Systems.” The main goal of this document is to demonstrate the country’s aim to introduce digital technologies and cryptocurrency, but do it in a safe mode. Bitcoin in the UAE, just like blockchain in general, is of great interest to the government and the Central Bank of the UAE. The UAE authorities are striving to become one of the first countries in the region and the world that would introduce the legislative base for this technology. However, the existing law leaves room for interpretation, and there is as yet no consensus on the attitude of the UAE government to bitcoin.

Thus, cryptocurrency trade in the UAE is tolerated, but is treated with caution. The main concern of the authorities is that bitcoin is difficult to control and it can be used to launder money, but the government does not ban it. For this reason there would be some necessary regulatory environment created and implemented to control this matter.

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