Dubai gains more financial popularity with each passing day, and this trend continues its upward path. Businesses are moving their headquarters to UAE, and this is mainly happening due to the nation’s friendliness with crypto.
More investors are getting a second Visa and moving to Dubai for this specific reason. Businesses that operate with crypto need crypto heaven, obviously, and the UAE, in general, is slowly but surely becoming one of the most popular crypto locations.
The mainstream adoption of crypto is an essential issue to discuss in 2022, especially since we’re hopping from one crisis to another on a regular basis these days. This has been one of the most important goals that the crypto space has set, and there are more moves that are taking the goals closer.
Cryptocurrencies see mass adoption booming in 2022 in Dubai
There are a lot of crypto-related moves that are taking place in Dubai at the moment, which support the mass adoption of digital assets entirely. We have already addressed many of them in the previous piece.
Probably the most important move that has to be mentioned has to do with the new regulation involving digital assets that just got out recently.
Last year, a crypto-based relief fund in India was routed through entities in Dubai since regulations in the UAE are more favorable for such conversions.
Dubai is already a top-rated destination for crypto and web 3.0 in general, and the nation may have done the crypto space a favor. Back in March, the city adopted the very first law that is meant to regulate the operations of crypto and digital assets such as NFTs.
This has already been confirmed on Twitter Sheikh Mohammed bin Rashid Al Maktoum, the prime minister of the United Arab Emirates (UAE).
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
The new law notes that the UAE wants to establish a Dubai Virtual Assets Regulatory Authority (VARA). This is supposed to be tasked with regulating the assets.
According to the same online publication mentioned above, the VARA is also supposed to be an independent authority that is placed under the Dubai World Trade Centre Authority. It’s essential that this entity will oversee the regulation, governance, and licensing of cryptocurrencies, NFTs, and other virtual assets.
The VARA’s primary responsibilities include the following:
- regulating the issuance of new crypto tokens
- supervising and controlling the trading of virtual assets
- ensuring that high standards of protection are in place
- monitoring transactions
Also, it’s important to note the fact that the transfer of virtual assets, management services, exchange services, operating virtual assets platforms, and virtual asset custody is also under the VARA’s domain.
More than that, another issue that is worth mentioning is that this new law prohibits people from having to do with crypto-related activities without the Dubai VARA’s authorization.
More than that, people who want to deal in crypto will have to establish a presence in Dubai. This is a vital thing to mention.
Business Insider said that Maktoum said the country wants to establish Dubai as a “key player in designing the future of virtual assets globally.”
Lots of people hopped on Twitter and confirmed that moving to Dubai is the best decision that they are taking these days.
Someone said: “I am moving to Dubai soon for this very reason. Dubai, always has been on the forefront of advancement in technology, crypto, and proper execution of processes for a sustainable society. Several world leaders could learn a lot by the creation and evolution of Dubai.”
Financial freedom is vital in 2022
More and more individuals understand the importance of financial freedom, especially during an enormous crisis.
We cannot argue – since 2020, when the pandemic hit the world, normality as we used to know it came to a halt, and ever since, life has been lived under the sign of fear and uncertainty.
When we thought that this was over and we were going to get back to something as close to normality as possible, another tragedy hit – this time, it was the Russia-Ukraine war is affecting everybody one way or another.
One of the most important triggers that push the mainstream crypto adoption has to do with the fact that crypto brings freedom in a world with so many conditions. Where fiat money goes wrong, crypto makes it all better and safer.
Being able to spend your money wherever you go becomes vital these days. Just take into account what’s been happening lately and how the Russian people are paying for the dreadful actions of their president. Following the sanctions that Russia has been seeing, the Russian people are being punished.
In case you don’t know, the largest credit cards networks, Mastercard and Visa, and PayPal, which is the internet payments giant, have recently said that they suspended services in Russia.
This means that the credit cards issued by the Russian banks will not be working outside the country anymore. Such a terrible event is an example of the huge importance of being able to spend your wealth.
Besides this, there is also the issue with Canada, where Justin Trudeau gave the order to freeze the bank accounts of the people involved in the protests against the government.
All of this shows a single thing – you are definitely not the owner of your wealth as long as a bank is a custodian of what you own.
Anyway, as a conclusion, in 2022, people have finally understood the importance of crypto and the financial freedom that digital assets bring.
After people saw the fact that governments had the ability to freeze people’s accounts whether they choose to, crypto adoption saw massive boosts.
Bitcoin’s popularity is also surrounded by massive controversies, but this does not change the following: more and more merchants and venues are willing to accept crypto for payments.
The mainstream adoption of digital assets has been one of the most important goals that the crypto industry had.
There are so many uplifting things that have already happened in the crypto space that have boosted the mass crypto adoption to the moon, and they continue on the most successful path these days as well.
While Europe seems to be doing its best to gain control over the digital asset investors, not quite the whole world is doing the same.
The importance of inflation in Bitcoin’s rising popularity
Bitcoin’s mass adoption, along with the mainstream adoption of its underlying tech, the blockchain, exploded in the past years. What fascinates people the most is the fact that this has been happening in times of crisis.
Bitcoin managed to show its powerful ability to be a vital asset that remained uncorrelated to the traditional markets.
This boosted its popularity even more. Bitcoin is a safe haven and a hedge against inflation these days, and more people are understanding this important feature that the king coin shows.
Bitcoin was built by its creator Satoshi Nakamoto with a fixed upper limit regarding the number of coins that can ever come into existence.
The Bitcoin supply has been set at an upper limit of 21 million. This is a massive advantage that the coin has because it keeps it scarce. As you probably know by now, the scarcer an asset is, the more valuable it gets.
Keeping Bitcoin scarce will make sure that the value of the digital asset can hold steady for years to come.
This is precisely the reason why some are calling Bitcoin digital gold. By keeping the number of Bitcoin capped at 21 million, inflation can be controlled – the inflation that can arise from an unlimited supply of coins. To control inflation, Satoshi embedded a fixed supply of BTC into the network code.
This limited BTC supply is the one that makes BTC a scarce asset, and this is the main trigger that will boost the coin’s price in the future.
The fact there will only be 21 million Bitcoins in existence will ensure a steady flow of liquidity.
All of this is extremely important because inflation is on the rise everywhere, especially since the whole world keeps hopping from one crisis to another.
As inflation grows, people are always looking for ways to protect their savings from the devaluating effects that inflation brings. Inflation mirrors the rising prices of goods and services.
When people look at such surging prices, the purchasing power of the masses keeps decreasing, and this means that more fiat money is needed to buy goods and services that you would have been able to buy for a lower amount of money a while ago.
The micro and macro factors affect the rising inflation in society. The sustained rising inflation occurs when we have an increased supply of fiat currently in circulation that is not matching the economic growth.
Bitcoin is a hedge against inflation
CNBC published a piece not too long ago in which Bitcoin is described as being a great hedge against inflation. A good hedge against inflation can appreciate in value, and we know that this is precisely what Bitcoin has been doing over the years.
This can happen even as the purchasing power of fiat currency is going down. Bitcoin is shining bright as a hedge against inflation, and it delivers massive returns to investors.
The rising inflation throughout the world triggers positive results in terms of crypto. This can trigger more crypto adoption.
The CNBC article also notes the fact that the main factor that is making Bitcoin such a great hedge against inflation is the limited supply of 21 million coins.
Just recently, MicroStrategy’s CEO Michael Saylor who is also a Bitcoin maximalist revealed his thoughts on this important subject.
He believes that a boost in inflation will result in weakened global currencies, and it will also end up stimulating the crypto mass adoption.
He explained that a surge in prices would impact the whole economy and public debt.
The surge in food & fuel prices is going to further weaken global currencies and encourage the imposition of capital controls, price controls, & export controls, favoring a strategy based on digital products, digital services, & digital assets. #Bitcoinhttps://t.co/9QYb4DwqBV
— Michael Saylor⚡️ (@saylor) April 4, 2022
The Bitcoin evangelist says that BTC is a strong hedge against inflation. He also addressed the fact that Bitcoin is a store of value to financial institutions, investors, and economists.
A lot of his followers believe that people do not understand digital assets enough and this means that more education on the matter should be on the table. For instance, a follower said: “Unfortunately people do not understand money let alone currencies. Need more global educational videos.”
All in all, Bitcoin is an excellent choice for investing your wealth these days, and more people and nations understand this. The UAE understands this is Dubai is the perfect mirror to support this claim.
The location represents a true heaven for crypto enthusiasts for which financial freedom is so important these days.
Billionaires trigger warning about the US inflation
Now, the Bitcoin billionaires are sounding the alarm about the US inflation and they address the US dollar as well.
Bloomberg shared a piece on the matter not too long ago. They begin their article by saying that the billionaires Ricardo B. Salinas and Orlando Bravo used an appearance at the Bitcoin 2022 conference in Miami to warn about the dangers of US dollar inflation. We have also addressed the subjects of inflation above.
“I have a big grudge against fiat, I call it the fiat fraud,” Salinas, the owner of Mexico’s Banco Azteca, said not too long ago.
He recounted the story of how his salary as a young MBA graduate in Mexico in the 1980s declined from around $2,000 a month to just $20 over six years, adding, “that’s hyperinflation.”
New regulations in Dubai attract more crypto investors
The new crypto regulations that we addressed at the beginning of this article are only setting the scenery for boosted crypto adoption in the area.
Business Insider, Financial Times, and more important publications note the fact that such new crypto regulations are luring the big foreign investors to the UAE.
Crypto companies rush to Dubai these days to set up their business. This is especially since the city started offering crypto licenses. This is making the gulf state the latest jurisdiction that is perfect for the people seeking to spend their wealth in crypto. Dubai is about to become a haven for the global crypto industry.
The crypto exchange ByBit recently said that it would be moving its headquarters from Singapore to Dubai. This is joining the important industry players Crypto.com, FTX, and Binance to establish a foothold in the city.
This massive enthusiasm for Dubai among crypto firms comes as their hopes of Singapore being a hub for digital assets have faded.
It’s still true that Singapore has approved just a few crypto groups that applied for licenses, but at the same time, Dubai has attracted a number of industry heavyweights in the few weeks since it launched its licensing scheme.
Changpeng Zhao, CEO of Binance, who relocated from Singapore to Dubai, said the Gulf state government has attracted crypto businesses with its “open-mindedness and business-friendly attitude.”
As you probably know by now, Binance is the world’s largest cryptocurrency exchange by trading volume. The exchange inquired about the rules under which it will now be regulated in Dubai.
It’s also important to note the fact that back in December, Binance signed an agreement with Dubai World Trade Centre, a duty-free business park, to advise on the regulatory landscape for cryptocurrencies in the Emirate. The Virtual Assets Regulatory Authority, which launched earlier this month, issued a license to Binance.
Zhao said that Binance had pushed for the formation of a bespoke regulator, describing the decision as “very excellent.” He also said that the Dubai authorities are “the smartest regulators and government officials anywhere in the world.”
All in all, Dubai’s crypto charm attracted more and more companies here.
FTX Europe, which is a Swiss-based arm of the exchange, said in March that it would establish a regional headquarters in Dubai.
This came after it got a license there. Singapore-based Crypto.com added a Middle East office in the city not too long ago as well. BitOasis, a Dubai-based crypto exchange, also received a provisional permit not too long ago.
It’s also important to highlight the fact that Binance has chosen Dubai, where it already has around 200 employees in three offices, as its regional headquarters, Zhao said. By comparison, he said: “The Singapore government takes a slightly more cautious approach.”
The main reasons why Dubai is great for investments
Experts concluded that Dubai is one of the best places to be if you are a crypto enthusiast.
“With no capital gains tax, ease of buying and selling (crypto) anonymously and spending with cash makes life very easy for an enthusiast (in Dubai),” according to a source who spoke to BeInCrypto.
The same source continued and said:
“Compared to most industrialized countries, I would say that Dubai is one of the easiest and best places to come and realize and spend crypto gains. Being able to buy property and cars for bitcoin is very unique and in many western countries not even possible.”
The UAE is an attractive crypto destination, and this is mainly due to the ease of converting Bitcoin and most digital assets into cash with low fees. People can do all of this while, at the same time, remaining almost anonymous.
This is vital these days when most authorities are trying their best to kill privacy and anonymity. Just look at what’s been happening in Europe.
The countries that are included in the European Union are seeing some crucial changes these days.
The entire crypto space was taken by surprise by the decision that the EU Parliament took a few days ago. The members of the EU voted for new regulatory measures, which turned out to prohibit anonymous crypto transactions.
Decrypt online magazine notes that the vote was first reported by CoinDesk. It’s also important to mention that it was confirmed to Decrypt by Valeria Cusseddu, advisor to the Committee on Economic and Monetary Affairs.
“The ECON and LIBE committees voted to approve a proposal that would require cryptocurrency service providers, such as exchanges, to collect personally identifiable information from individuals who transact more than 1,000 euros using so-called unhosted cryptocurrency wallets,” according to the same online publication that is mentioned above.
It’s also essential to note that the votes on a few amendments were tight, but still, the final draft was eventually approved.
Europe has been confronted with some changes that will definitely affect the crypto space a lot. As expected, investors are not happy – this is one of the reasons why the UAE is an excellent destination for crypto enthusiasts these days.
Crypto trading in Dubai – all you need to know
Trading crypto in Dubai is the easiest move, and this is one of the main reasons that the location has become crypto heaven for enthusiasts.
Here, exchanges generally require a basic KYC identity, and this is all that it’s needed.
Here’s an example – in the case of Cointral, which is a Turkish-owned exchange with an OTC desk in the Emirate, “you just walk in and trade on the spot,” according to a source who talked to BeInCrypto during an interview.
Another issue that is worth noting is that the crypto exchange mentioned above charged a general fee of 3%. According to the same notes, even though this might seem a bit much, “there are also many local dealers you can find to make low to high volume peer-to-peer (P2P) trades with fees around 1%.”
UAE-based online exchange Bitoasis offers similar OTC services, according to the same source who spoke to the publication. This allows “people to buy and sell with local bank transfers.”
It’s essential to note that crypto use in Dubai is so fluid that the central government has adopted deliberate strategies to advance mainstream usage.
It’s also important to mention that back in February, there was a government-owned entity in Dubai named Kiklabb, that began accepting BTC, ETH, and USDT as payments for its services.
Just in case you did not know, Kiklabb is a free trade zone that helps companies to set up shops in the Emirate. It also issues trading and more licenses. It also deals with visa processing. There are more and more companies that are taking care of Visas these days, as we already noted in our previous articles as well.
One important name among them is Crypto Expat – they understand the importance of getting a Visa quickly for those interested.
According to the official website, Crypto Expat can help prepare a Visa for all individuals who want or plan to retire to the UAE. This way, people can get the chance to build their company efficiently and enjoy all the benefits of developing it in the UAE.
The entity called Kiklabb also leases office space to its customers on board Queen Elizabeth 2 cruise liner anchored at Port Rashid in Dubai. The fantastic thing is that the payments for this and other services can be made in Bitcoin.
Crypto adoption obviously flourishes in Dubai, as you can see.
Tasawar Ulhaq, who is the chief executive officer of Kiklabb, said that crypto-based payments offer boosted accessibility for global entrepreneurs who are looking to start a business in the UAE. “Cryptocurrencies are the payment method of the future,” he stated.
Dubai is definitely a pro-crypto location that allows investors to buy, sell, or hold digital assets at zero taxes.
This seems absolutely outrageous to most of the world’s governments.
Most of them are pushing new legislation to levy taxes on capital gains from BTC. UAE has the goal of allowing more investments in the local crypto industry.
The same source said the following: “Dubai and UAE don’t have any tax on income or capital rendering the anti-money laundering laws very relaxed.”
They continued and revealed that crypto “are neither illegal nor recognized as legal tender in the UAE.”
It seems that banks could sometimes question the source of funds when conducting transfers, “but generally, it’s no questions asked up to very high volume.”
According to the official reports, the UAE is planning to use blockchain technology for 50% of government transactions this year. The Dubai Future Foundation estimates that the country could save more than $3 billion through blockchain and crypto use.
Many investors have been making significant gains via crypto, and lots of them are looking to cash out. Dubai is offering excellent opportunities in this direction.
The Visa issue is resolved by specialized firms such as Crypto Expat, as we noted above. All that investors have to do is decide how they will spend their crypto wealth in Dubai, and the rest is taken care of by such firms so that people can then enjoy the fantastic time that this heaven will have to offer.
As you can see for yourselves, Dubai is definitely on its way to becoming a crypto hub and a center for web 3.0. As more people start to realize this, they will continue to move to the UAE in order to be able to spend their crypto wealth safely and securely.
Today's Cryptocurrency Prices