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Generation Crypto: Dubai Paves The Way For Innovative Trading And Tackles DeFi Risks; Case Studies: Binance and BitOasis

The Middle East accepts crypto with open arms. Some significant crypto exchanges are rushing to set up their headquarters in Dubai as the city becomes one of the most critical hubs of web 3.0.
Binance and, more important, crypto exchanges have moved their headquarters to Dubai. This will definitely lead to more and more similar moves from other crypto entities in the near future. Dubai also has new crypto regulation, which will only promote the mass adoption of the digital assets and their underlying technology, the blockchain.

Mass crypto adoption has been one of the most important goals that the crypto industry has set, and there have been a lot of moves made in this direction. They will continue, and the adoption wave will keep growing stronger.

Digital assets have been making headlines in the financial context for a while now, especially in the scenery of the Russia-Ukraine war.

The official reports noted that the Ukrainian government managed to raise millions of dollars in order to fund the fight against the Russian invasion. They turned the spotlight on digital assets.

 

Dubai steps up its crypto game – Case studies: Binance and BitOasis 

Binance moves its headquarters to the UAE, and BitOasis follows suit

Not too long ago, the crypto space became overly excited when Binance made a great announcement. Binance will reportedly offer its products to big institutions and accredited investors in the first phase of its operation in Dubai.

This is what the regional head of MENA, Richard Teng, told Arab News.

He continued and said that the team wants to become the platform that builds tools bringing faster crypto adoption. 

Their goal is also to improve the freedom of money in the region. Teng said this and then added that the company plans to serve a more extensive clientele by offering more products.

All these prospects look amazing, and the crypto exchange recently received the official license from Dubai’s Virtual Asset Regulatory Authority. 

The company is now able to operate and expand in the region under the emirate’s ‘test-adapt-scale’ model for digital asset markets.

“It is an extremely innovative approach from the Dubai government. It recognizes that crypto is quite different from securities, digital tokens, and commodities and proposes a dedicated framework that can serve different parts of the value chain, manage risks and support innovation,” he added.

According to the online publication Arab News, Teng’s massive confidence is not based on his hardwired optimism. 

The official notes reveal that he has spent 20 years in the regulatory space and understands the region well. He used to be the CEO of Abu Dhabi Global Market for six years.

This was before he took over the mantle of the regional head of one of the world’s largest crypto platforms.

Teng said: “Working with the Dubai government you realize how well the country supports innovation, crypto adoption, and blockchain development, which is helpful since these factors will become the pillars of several segments of the economy in the future.”

He also added the following: “Cryptos will be the future of finance and financial services. They are playing an important role in cross-border payments,” said Teng.

He also added that this currently poses a massive challenge because the fees for making payments across borders are incredibly high.

Binance has been making massive efforts to work toward a crypto-friendly ecosystem that manages to be inclusive, secure, and also transparent. 

One important issue to mention is the fact that back in December, the company signed a partnership deal with Dubai World Trade Center Authority. The move was to help it set up and regulate an international virtual asset ecosystem. 

It’s pretty obvious that this makes it an excellent case for a public-private partnership in the digital space. The crypto exchange is also hiring 100 positions in the UAE to keep up the momentum in the region.

“We are working closely with institutions to make sure the next generation is ready for crypto, blockchain and tokenomics,” he said. 

It’s also worth noting the fact that the company will soon be introducing training programs in the region on the markets and how to trade responsibly.

All of this is a part of a massive effort to set more and more faith in crypto. This cannot be achieved without regulation because regulation is the trigger that can bring big players into the crypto game. 

In this direction, Binance is currently running an emergency insurance fund that protects customers, called Secure Asset Fund for Users, or SAFU. This entity was launched back in 2018, and the fund now stands at over $1 billion. If any user suffers a loss due to illegal activity such as hacking, the company compensates for the loss.

Making such essential efforts to bring more faith to the crypto space is necessary, especially since there’s a considerable amount of skepticism among the potential investors about the concept of a decentralized world of finance and its high volatility.

But it’s also vital to note the fact that it’s a matter of time when mature businesses and nations embrace the innate strengths of the crypto business and profit from it.

 

The story of BitOasis crypto exchange

The National News also brings up the interesting story of BitOasis. The UAE’s home-grown crypto trading platform is seeing expansion in the Middle East, North Africa, and beyond, according to chief executive Ola Doudin.

Doudin is an accidental entrepreneur, according to the online publication, who did not like the corporate culture.

They also note the interesting fact that she decided to hop in the crypto wagon back in 2015. Despite the controversies that are surrounding the crypto space, she and a co-founder managed to build a business that has carried out crypto traders above $4 billion.

It’s been also reported that the massive success of BitOasis is the result of sheer dedication and tons of really hard work. The project grew from a side one that Doudin had with crypto enthusiast Daniel Robenek into one of the Middle East and North Africa’s biggest crypto trading platform.

On the other hand, she had no time to rest as the evolution of regulations across jurisdictions is opening up new avenues of growth for the company in the Mena region and beyond, Doudin said.

She also noted the fact that full-time jobs were not at all what she wanted and said that such a thing would not allow her to flourish.

After that, she began working on entrepreneurship initiatives with Aramex founder Fadi Ghandour. During her research into start-ups and FinTech ventures on different models of payments when Doudin developed an interest in Bitcoin and the tech behind the digital assets, the blockchain.

Realizing how disruptive the tech is and how high the potential of the digital assets is, she reached all kinds of crypto enthusiast meetings in Beirut, Amman, and Dubai.

Back then, during one of those meetings at Souk Al Bahar in Dubai, she met Mr. Robenek, BitOasis’s chief technology officer and the engineering brain behind the platform’s system security. He dropped out of his doctoral program to join the venture.

They discussed all kinds of juicy subjects during the meetings, including themes about accessibility, buying and selling Bitcoin locally.

She said that it’s obvious that people want to buy. Founders were convinced that with technology adoption, there was a “huge use-case for cryptocurrencies and that necessitated a platform to buy, sell and store crypto assets safely.”

She said that this is how the exchange started.

BitOasis was launched back in 2015, and it has come a long way from being a “minimum viable product,” and so has the crypto market in the Middle East.

The Middle East is one of the fastest-growing crypto markets in the world, and according to official data, “Turkey had the highest transaction volume at $132.4bn during the July 2020 to June 2021 period. The UAE is in third place behind Turkey and Lebanon, with a transaction volume of $25.5bn.”

The massive boost of the regional market is reflected in the rapid growth of BitOasis. This venture started with Bitcoin only, and today, investors of the platform can trade over 40 cryptos.

The main focus is on retail investors, but the company refined its offerings to serve institutional investors as well.

This trading platform allows investors to buy, sell and also swap cryptos and manage their portfolios as well.

BitOasis is simplifying crypto trading, that’s for sure. Since the start of this year, BitOasis has added more than 20 tokens to its platform.

Hopes for more growth are even stronger as in the past 18 months, the level of adoption of crypto assets in the Middle East has surpassed the global average two times over.

She made sure to highlight the fact that the level of adoption across the Mena region is 1,500% in terms of growth. This is compared to the 800% in terms of growth in a global region.

The same online publication mentioned above also has a section called “Q&A with Ola Doudin, co-founder and chief executive of BitOasis.”

Here’s one relevant question that she was asked: “What is your entrepreneurial philosophy — are you a risk-taker or a cautious businessperson?”

The answer was that she started the exchange believing that crypto can change the way we transact, save, and invest as well.

According to her, the regional crypto space is buzzing with activity now. She said that back in 2015, the idea of launching a regional crypto exchange was very new. But now, things are obviously different.

She continued and said this:

“There was definitely an element of risk to consider, especially since no one could predict what regulation was going to look like in the near future and how that could impact the industry. So yes, overall, you could call me a risk-taker.”

Another interesting question that we believe is relevant in our case is the following:

“What new skills have you learnt in the process of launching BitOasis?”

She responded by revealing the skills that she had learned along the way. She said that in an industry like crypto, people need to be proactive and learn quickly in order to adapt to new developments.

She also said that even before a regulatory structure was in place, BitOasis “meticulously self-regulated to ensure the platform was at par with some of the best crypto asset exchange platforms in the world.”

She mentioned the fact that this move played a massive role in regulators seeing their value and understanding the fact that the exchange is trustworthy.

The team also adapted to the evolving regulatory frameworks in order to ensure continuous growth.

All of this was taken care of while staying compliant and providing the highest level of consumer protection. This comes following new regulations that Dubai embraced recently, and we also addressed as well.

 

Huge shifts of Dubai in the crypto space

These important moves that have been made by Binance and BitOasis are only mirroring the massive shifts that Dubai has seen in the crypto space.

People have been migrating to this crypto location for a while now, and it seems that this trend is only intensifying due to the multiple benefits that come to Dubai regarding the crypto space.

The mass adoption of crypto and their underlying tech has been flourishing in Dubai, and this will definitely continue.

The blockchain is an innovative technology that does not stop impressing the financial space and the business industry as well.

 

Binance boosts Middle East expansion with Abu Dhabi approval

Binance made a massive move when it moved its headquarters to Dubai. It also obtained a provisional green light from Abu Dhabi regulators, and it managed to deepen its expansion in the Middle East as well. 

It’s important to note the fact that it was approved “in principle” by the Financial Services Regulatory Authority of Abu Dhabi Global Market to operate as a broker-dealer in digital assets. 

The firm also made sure to say that the move is an initial step toward becoming a “fully-regulated virtual asset service provider” in the city.

As we already said, this is the second city Binance has secured approval from — the company received a crypto license in Dubai last month. The move also comes after Binance was authorized in Bahrain by the country’s central bank.

Binance pushed into the Middle East market following getting a not-too-warm welcome in other vital locations. 

For instance, as CNBC notes, in the U.K., regulators placed restrictions on the firm, barring it from undertaking any regulated activity. 

Also, it’s interesting to note the fact that in Singapore, it limited its service after the country’s central bank warned it might be in violation of local payment laws.

As a response to a tweet from CNBC, Binance CEO Changpeng Zhao said the company is “not shunned elsewhere” and that there’s “more to come.”

Binance used to be famous for tending to operate independently of other local regulations. 

The CEO used to show his pride for not having an official headquarter, but as a response to global regulators, Binance now says that it wants to become a regulated business. 

 

The UAE tackles risks from DeFi with massive efforts 

The UAE is placed at the forefront of innovation and emerging tech, and it will definitely witness more global players descend on the desert to set up more crypto companies here. 

This means that investors there will have more and more chances to have a vast palette of choices regarding crypto platforms. 

The ones we mentioned above are already making a massive regional presence, and the investor sentiment is definitely at its peak with the nation witnessing disruptive investment options. 

The Abu Dhabi Global Market (ADGM) has so far 11 fully licensed and approved in-principle virtual asset players in its community.

“Since ADGM introduced its virtual assets guidelines in 2017 and launched the world’s first fully comprehensive virtual assets regulatory framework and regime in 2018, we have seen a growing number of local, regional, and global players anchoring their presence and providing virtual assets activities and related services in Abu Dhabi, the UAE, and across Mena,” a spokesperson said. 

“This, in turn, attracted a heightened level of retail and institutional investors’ interest and investment. In addition, ADGM has also earlier introduced its regulatory sandbox and fintech Digital Lab to encourage and assist fintech firms in testing their products in a “live” environment, and also to ensure that its fintech firms understand and comply with the UAE’s rigorous AML and KYC compliance standards,” said ADGM spokesperson.

ADGM is searching for market feedback on its proposed enhanced virtual asset framework and allowing regulated multilateral trading facilities or custodian groups within the ADGM to conduct non-fungible token (NFT) activities.

“Over the years, the UAE has also doubled its efforts to provide a supportive environment and regulatory framework for digital assets and blockchain.” These are part of collective efforts to boost global mass crypto adoption. 

 

It’s also important to note the fact that recently, The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued a discussion paper on DeFi, in order to engage with industry practitioners and other stakeholders to explore the potential opportunities arising from decentralized finance (DeFi), associated risks and what a future regulatory framework may resemble.

An international online market research company called Toluna managed to conduct a global study to understand consumers’ perceptions of digital assets. They interviewed about 9,000 people aged 18 to 64 from four regions and 17 countries, including the UAE.

All in all, this important study showed the fact that the overall outlook for crypto investments in the UAE is solid compared to the other global markets. 

It seems that about 78% of investors are expecting to increase the proportion that is allocated to investible assets for crypto investment in the UAE against the 67% in the global markets.

While moving to the UAE might seem a great idea, you might believe that a Visa is tough to get.

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 crucial 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.

 

UAE’s most popular industries – Banking, IT, and marketing 

 

There are more and more UAE employees who want to change their industry these days. There are all kinds of career growth opportunities, and obviously, the most popular one is crypto.

We’re bringing up a new survey released by YouGov and Bayt.com. This relevant survey revealed that 6 in 10 professionals in the UAE are considering an industry change in the next few months. 

It’s also worth noting the fact that about 49% are citing better salary as the top reason for an industry change. Then, comes better career growth at 46%. 

This survey revealed the fact that hospitality, recreation, and entertainment emerged as the most appealing industries amongst those who consider an industry change.

Zafar Shah, who is a research director at YouGov, said the findings will support future earners and employees as well as offer a glimpse of industries.

The same survey also revealed around a quarter of UAE employees changed their industry at least once in the past two years.

They did this for higher salaries and better career growth opportunities as the top two reasons for changing their industry.

There’s another critical study that we have to bring into the discussion. A recent survey released by Cooper Fitch revealed that 23% of organizations would reduce their headcount.

The Bayt.com survey, which was conducted online from February 9 to 28, 2022, found that job seekers are most interested in working in banking, finance, accounting, IT and advertising, marketing, and public relations sectors.

“The survey provides the timely insights needed to orient Mena professionals towards opportunities as well as optimize recruiters’ hiring efforts. We find that technology-driven job creation is forecast to rise with IT/ Internet/ E-commerce expected to record the strongest growth in the coming year,” said Zafar Shah.

The crypto industry is one business sector that is exploding in popularity these days, and we have already addressed more reasons for which this is happening.

Financial security and safety are among these reasons, and this is completely understandable, especially considering the enormous crisis that the world has been hit with since 2020.

2020 managed to change life and normality as we used to know them, and ever since, life has been governed by fear and uncertainty.

 

Crypto bosses: the tide is turning on regulation

Regulation in the crypto space has not been looked at with too high enthusiasm, but this is an extremely important factor when it comes to crypto mass adoption.

The crypto industry has been promoting the mainstream adoption of digital assets a lot, and this trend continues. 

There have been a lot of moves made in this direction, and they continue these days as well. The moves that the crypto exchanges and other platforms are making only come to support this claim. 

A recent CNBC article notes that China has banned crypto, but countries like the US and Britain announced a move that will regulate the crypto space.

 “The tide is definitely turning,” Changpeng Zhao told CNBC on the sidelines of the Paris Blockchain Week Summit. The crypto space has to make more efforts before we can reach mainstream adoption. This is also depending on global regulators as well.

Governments are making important moves in crypto. 

 “The regulatory landscape around the world is coming up to speed quickly,” Nicolas Cary, co-founder of crypto wallet maker Blockchain.com, told CNBC.

The UK government announced it would bring stablecoins into the local payments regime.

Governments want to foster innovation around financial markets and the next possible generation of the internet, known as “Web3,” crypto execs told CNBC.

 

Closing words 

Crypto offers people a once-in-a-lifetime opportunity to achieve financial freedom. But unfortunately, 99% of the investors will never get there. Some critical advice regarding investments in crypto includes the following:

Build a successful crypto portfolio and keep it. Not every call that you make has to be correct. You can make only ten bets and hit one winner. In the crypto space, you don’t have to strive for perfection; you have to strive for profitability. In other words, this means taking losses along the way in pursuit of positive returns. 

In order to implement this strategy, you have to diversify. Over diversification is pretty bad, but under diversification can also be harmful that’s for sure. 

This is why it’s best for investors to build a portfolio of more projects, according to experts.

This way, you will be able to capture the overall trend of the market. If this is bullish, having exposure to more assets will turn out advantageous. 

 However, in a choppy/sideways market like this, you have to be more careful about the quality and quantity of projects you hold.

What does managing a portfolio consist of? Well, it’s not that difficult. It’s about taking profits, finding the best yield opportunities, staking and compounding, rebalancing based on performance, finding new projects, and discarding existing holdings.

Categories
Crypto Nomad Lifestyle

Dubai Lures Crypto Companies Following New Regulations – Biggest Crypto Exchange Braces For Huge Competition in UAE

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).

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 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.

 

Closing words

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.

Categories
Crypto Nomad Lifestyle

Dubai Becomes A Hub For Web 3.0 – How To Get Your Residential Visa in 2022

More nations are seeing the importance of adopting digital assets and their underlying tech, the blockchain, in 2022. The mass adoption of cryptocurrencies has been one of the most important goals that the crypto industry has set, and there are more exciting things happening to support this.

Traditional finance is showing its flaws, and the future gets closer with the help of digital assets. Fiat money will become oblivious over time, and people will be using crypto in the near future, according to more and more experts in finance and economics.

The popularity of digital assets has been on the rise, and this is a thing that’s been happening, especially since 2020. Now, it’s 2022, and people managed to understand the massive importance of cryptocurrencies. They also understood how essential the countries that accept and adopt them are. There are a few countries on the planet that are showing massive support for crypto, and we’ve already addressed them in our previous articles.

As we already noted, people have managed to understand the importance of financial freedom these days, and this is one of the triggers that boosts the mainstream adoption of digital assets straight to the moon.

People saw what governments are able to do with people’s money – for instance, in Canada, the government froze people’s banks’ accounts at their convenience. People who are using fiat money and keeping their savings in banks are not actually their own keepers of the wealth. This is an issue that has become extremely disturbing.

You will not see this happening when crypto is involved, and it’s probably the main reason for which mass adoption of digital assets has been racing in times of crisis.

In 2020 when the pandemic started and all hell broke loose all over the world, crypto saw a massive adoption boost. It’s essential to note that this continued during the two years of nightmare triggered by the pandemic.

The drastic measures that have been taken due to this across the globe cryptos turned out to be a solid and resilient safe haven and a hedge against inflation.

Bitcoin’s popularity is also surrounded by massive controversies regarding all kinds of aspects. On the other hand, this does not change the following: more and more merchants and venues are willing to accept crypto for payments. As Investopedia notes, there are a few countries in the world where crypto adoption is rising straight to the moon.  These include Malta, Germany, the UAE, and more.

In this article, we’ll address the high life that people can enjoy in Dubai, a city that is on its way to become the hub for web 3.0. UAE is a genuine crypto heaven these days and more investors are starting to understand this. This is exactly one of the reasons for which Dubai is so popular in the crypto space these days.

 

Dubai becomes a hub for web 3.0 – the first law to regulate crypto

 

Dubai is already a leading player in the web 3.0 community. For instance, back in December, the Dubai Media Office explained that the Dubai World Trade Centre would officially become a crypto zone. It’s also important to mention that all companies operating cryptocurrencies and virtual assets can operate from here, according to the notes.

At the time, a statement from the city’s media office said it would establish “rigorous standards.” This would be set in place for the sake of investor protection and in order to prevent money laundering.

Back in 2021, 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 via a tweet from 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 aforementioned entity will cooperate with all related entities to ensure maximum transparency and security for investors,” Maktoum said in his tweet as per Business Insider.

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, and more.”

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 also noted that Maktoum said that the country wants to establish Dubai as a “key player in designing the future of virtual assets globally.”

 

Critical features of the virtual assets law

 

JDSupra also notes that last month, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Ruler of Dubai, approved Law No. 4 of 2022 on the Regulation of Virtual Assets in the Emirate of Dubai (the “Virtual Assets Law”).

According to the very same publication, the landmark Virtual Assets Law is a pretty crucial legislative development that’s taking place in Dubai. This is applicable to crypto services that are provided all over the Emirate of Dubai and Dubai’s special development and free zones (except the Dubai International Finance Centre (“DIFC”)).

More than that, it should also be mentioned the fact that The Virtual Assets Law serves as an essential step in establishing the Emirate of Dubai’s position in the crypto sector. This critical law will undoubtedly have massive implications for the future landscape of crypto in Dubai.

The enactment of the new Virtual Assets Law also mirrors the increasing interest in crypto in the United Arab Emirates (“UAE”) and the region more generally.

Here are some of the essential features of the new Virtual Assets Law and the crucial implications that this law has over the related activities all over Dubai.

 

Establishment of a new Regulatory Authority 

First of all, the law addresses the establishment of a new Regulatory Authority. This law is establishing the Dubai Virtual Assets Regulatory Authority (“VARA”).

This is an entity affiliated with the Dubai World Trade Centre Authority (“DWTC Authority”), as Dubai’s primary virtual assets regulator.

One thing worth noting is that under the Virtual Assets Law, VARA targets the important aim to promote Dubai’s position as a regional and international destination in the crypto sphere and to develop Dubai’s digital economy.

This entity will also enhance crypto investment awareness in the region. It’s set to attract investment and companies that operate in crypto in order to establish themselves in Dubai.

 

The law’s entry into force 

Another issue that is worth mentioning has to do with the law’s entry into force. The Virtual Assets Law entered into force on March 11, 2022. This is the date of its publication in the Official Gazette. According to the official notes, any provisions in other legislation which are contrary to, or conflict with, the provisions of the Virtual Assets Law are effectively repealed.

 

The target of the new law

The target of the new law features an expansive scope, with virtual assets being defined as “a digital representation of value which can be digitally traded, transferred, or used as an exchange or payment instrument or for investment purposes.” This would include cryptocurrencies, tokens, non-fungible tokens, and any other virtual asset determined by VARA.

 

Activities that are subject to authorization 

The fourth important point that is worth mentioning includes the activities that are subject to authorization. The new law is applied all over Dubai and the free zones; this does not regulate crypto services at a federal level, and this is essential.

It’s also worth mentioning that the entities that operate in Dubai which fall within the scope of the Virtual Assets Law shall be prohibited from engaging in specific regulated activities in Dubai unless authorized to do so by VARA. More than that, any permitted activities shall be conducted within the limits of the authorization granted.

 

Licensing and requirements

To get a license, the law stipulates that applicants have to establish Dubai as the headquarters for their businesses. They must also obtain a commercial business license from the relevant licensing Authority in Dubai. This process and the requirements regarding anti-money laundering, disclosure, KYC, and transparency procedures will be set out in the regulations.

 

Coordination with other authorities

VARA will coordinate with the UAE Central Bank in order to implement the necessary measures to bring protection and stability to the financial system. This is set to boost the number of bank transactions that involve crypto. More than that, this will also increase the regulation of DeFi apps and crypto lending. Both of these evolved over the past years a lot.

 

Responsibilities of the New Regulatory Authority

VARA will have a broad mandate which includes regulating the operation and management of crypto and managing digital asset platforms, service providers, and more that are related to digital assets, and authorizing exchange services between crypto and currencies.

Everyone who is subject to the law is required to cooperate with VARA, and this includes offering info and documents that the Authority needs in order to exercise its powers and achieve its objectives.

 

Penalties and sanctions

Under the law, VARA can take various measures and actions, including “suspending the issuance of authorizations, suspending the activities of any virtual asset service provider and suspending dealings with any virtual assets in certain circumstances.”

You can check out more of the legal issues regarding VARA.

 

Getting a new residential Visa in Dubai

A lot of reasons are resulting in more people moving to Dubai to start a new life there and to enjoy their wealth. Some of them are even starting new businesses in the UAE, which turned out really successful for a lot of people, especially crypto enthusiasts.

We’ve already addressed the massive importance of a nation that understands how vital digital assets have become in 2022, and this is the reason that Dubai is currently heaven for crypto lovers.

Starting a new life here is a great choice, and below, we’ll discuss some important issues regarding such an important move for individuals.

Lots of people are giving it a thought about whether to start a new life someplace else, abroad. This is happening especially considering the hardships that some locations on the planet are currently facing due to the pandemic or the Ukraine-Russia war. People are now doing their best to get second citizenship or residence.

We have already explained the fact that Dubai is one of the most favorite locations that crypto enthusiasts choose these days, and the reasons for which this is happening are extremely varied.

Two years of nightmares triggered by a pandemic that managed to change life as we used to know it for good have changed normality for all of us. What we used to call a normal life has become a life in terror, a life lived under the sign of fear and uncertainty. Now, new tensions are flooding the whole world, and this time, they are coming out of the war mentioned above. This is affecting the whole planet, and it’s no wonder that people are thinking about relocating, especially from the problematic areas.

There’s been a question that is on a lot of people’s minds, and it’s about considering moving to Dubai. There are a lot of reasons for which people choose this.

Official reports are saying that the UAE government managed to launch a new initiative that allows foreigners over the age of 55 to settle in the country.

The same notes reveal that residents under this Visa will have to obtain their own health insurance policy. It is also important to note that they will have to meet at least one of the following financial criteria:

“Earn a minimum monthly income of AED 15,000

Hold a minimum of AED 1 million in cash savings in a UAE bank account in a three-year fixed deposit.

Own a property worth at least AED 1 million within the UAE.”

As a conclusion, “this new visa will allow retirees to live in the country for five years, which will automatically be extended.”

 

 

Getting a Visa in Dubai – buy a property with crypto

In 2022, a lot of things have changed, and we are not talking about negative changes only. Contrary to a lot of people’s expectations, getting a Visa to move to Dubai is not as difficult as it may seem at first glance.

There are specialized companies such as Crypto Expat, which are eager to help their clients move there and, who knows, maybe even start a business and enjoy all the benefits of developing it in the UAE.

The UAE has to offer enormous and growing business stability, huge markets, steady growth, a tax-free regime, and all kinds of investor-friendly processes.

It’s great to know that all kinds of innovative business models can be created in the UAE. As we already explained, the fact that the location is crypto-friendly is vital, and this is the safest option that people have here for making payments and doing business.

More and more people choose to spend their wealth in Dubai, and a lot of individuals see the many reasons for which real estate is a great choice. Speaking of crypto, digital assets allow the buying of any property in the UAE safely, easily, and quickly.

It’s really important and helpful that there are specialized companies such as the one mentioned above that help people with getting Visas to Dubai.

On the other hand, in order to get a visa to the UAE, you would need to get in touch with one of the UAE-based airlines, a tour agency, or a hotel where you plan to stay in the UAE.

More than that, they will apply for Visa on your behalf to the official Visa-issuing authorities in the UAE.

Tourist Visa for the UAE

On the official website about getting Visas for the UAE, you will be able to see all the necessary info regarding tourist visas and more.

For instance, on the official website, we can see that a tourist visa is for the people who are not eligible for Visa on arrival or a visa-free entry to the UAE.

According to the same notes, “Tourist visa can be obtained for eligible individual tourists from around the world. Females below the age of 18 are not eligible to apply for this type of Visa unless they are travelling with their parents.”

The official website also notes the fact that according to a Cabinet resolution that was passed in July 2018. This resolution says that children under the age of 18 years who are accompanying adults can get a free visa for their visit from 15 July to 15 September each year.

There are also important data about the new multiple-entry tourist Visa. This can be issued for all nationalities in a move that is targeted to facilitate the process for tourists and visitors.

“The five-year visa enables tourists to enter multiple times on self-sponsorship and remain in the country for 90 days on each visit, which can be extended for another 90 days.”

On the same website, you will also find information regarding the validity of a tourist visa.

Depending on people’s plans, tourist visas to the UAE can be issued for 30 days or 90 days duration, single entry, or multiple entries.

It’s also important to note the fact that not too long ago, the UAE facilitated a five-year visa which is enabling tourists to enter multiple times on self-sponsorship. It’s also important to note that they can remain in the country for 90 days on each visit, which can be extended for another 90 days.

Regarding the issue of who can apply for your tourist visa, the answer to this one is also complex.

You can get a visa through airlines.

It’s important to mention the fact that each and every airline has some conditions. These terms have to be met in order for your Visa to be arranged by them. One of these requirements is obviously to fly with them. For more updated and specific information, check the following UAE-based airlines for visa types, facilities, terms, and conditions.

There are also tourist visas via agencies and hotels as well. The licensed travel agents and hotels in the UAE are able to arrange a tourist Visa for you if you get a ticket via them and maintain a hotel reservation with the specific hotel. People can also contact travel agencies in their own country for any tourist packages that are available to the UAE in collab with a local tour operator.

The official website also notes the fact that it is important to verify the authenticity of travel agents that you are dealing with and refrain from paying or sending copies of the official documents until you are 100% sure that the tour operator is a genuine one.

The official website dropped a note which is extremely important: “The UAE embassies do not issue tourist visas. In order to get a tourist visa to the UAE, you need to get in touch with one of the UAE-based airlines, a tour agency or a hotel (where you intend to stay) in the UAE who will apply for Visa on your behalf to the official visa-issuing authorities in the UAE.”

 

Top financial reasons to move to UAE

Dubai is a crypto city 

Dubai is the largest city in the UAE, and it managed to emerge as a tax-free crossroads between worlds. This city managed to embrace the position as an international location that is reflecting the reality of the world – progress, and controversy altogether. 

As Cointelegraph notes, Dubai is now at the center of all kinds of global tensions, but the UAE has managed to gain a reputation as a neutral player.

Just keep in mind the fact that Iraq, Iran, Pakistan, and Afghanistan are on the northern side of the Gulf. You can find Yemen to the South.

It’s essential to highlight that the great mix of relative geopolitical neutrality, technologically advanced military, and warm and highly welcoming business environment invites comparisons to Switzerland.

 

Comparisons to reps of crypto culture

Dubai has been compared to Silicon Valley for a really long time now. The truth is that the location is definitely more traditional, that’s for sure.
Kirill Mishanin, the co-founder of Infodriver Capital, says Dubai is an attractive place to set up a business:

“Dubai is very crypto-friendly and blockchain-oriented — you can easily set up a crypto-related company in the DMCC Free Zone with zero taxes. There are also a lot of events which the government supports, and it is easy to buy cars or property with crypto.”

Free zones in UAE – these are also important to mention because the UAE is operating various free zones. These are places where noncitizens and nonresidents can incorporate wholly-owned firms in order to receive visas and trade licenses as well.

 

The financial infrastructure is futuristic

It’s important to mention the fact that there are no taxes involved for corporations in Dubai, and the personal tax here for the residents is 0% on all income and in all forms.

Another essential issue worth noting is the fact that this is regardless of whether the money is earned in Dubai or somewhere else.

Back in December, a trader was praising all initiatives that Dubai has but said the following on Twitter, as a response to the tweet above:

“It is so exciting to see Dubai at the forefront of embracing innovation. The only thing missing is for the Government to instruct the banks to facilitate transfers to and from exchanges. Right now, banks don’t support crypto payments and receipts. I am a day trader in crypto and sadly, the banks here are the biggest challenge for traders like myself. I am more than willing to fulfill any KYC requirements.”

 

Removing crypto risks

UAE’s plans for a government-issued digital asset could remove associated crypto risks, according to new reports.

Unregulated cryptos are already popular in the UAE, and it’s essential to keep in mind that a government-issued coin could reduce the risks that are associated with crypto.

Lots of crypto fans say that digital assets and regulation don’t work well, but the truth is that regulation can bring in more important players with deep pockets.

Only then the mass adoption of digital assets and their underlying tech can be achieved.

Categories
Crypto Nomad Lifestyle

Global Heavens: Best Places To Live For Crypto Traders – Why Dubai Wins The Financial Race

Crypto popularity is on the rise, and this is happening at a really fast pace. In 2022, people have eventually understood the massive importance of financial freedom, and this is the main reason for which digital assets are gaining so much popularity.

After people saw that the governments have the ability to freeze people’s bank accounts at their convenience, this led to more adoption of crypto. People who use fiat currencies and keep their money in banks are not actually the keepers of their own wealth, and this is beyond disturbing. This does not happen with crypto, and it’s probably the main reason for which mass adoption of digital assets has been racing in times of crisis.

In 2020 when the pandemic started and all hell broke loose all over the world, crypto saw a massive adoption boost, and this continued during the two years of nightmare triggered by the pandemic and the drastic measures that have been taken due to this across the globe cryptos turned out to be a solid and resilient safe haven and a hedge against inflation.

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. As Investopedia notes, there are a few countries in the world where crypto adoption is rising straight to the moon. Check out which they are below.

 

Best ten cities where Bitcoin and crypto adoption thrives

 

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. Below, you can see ten of the most important cities out there that have understood the crucial role that digital assets have for our financial freedom and in which crypto adoption thrives.

 

San Francisco

The tech capital of the US is home to crypto trading platforms Kraken and Coinbase, and this probably means a lot. Over 100 merchants are accepting BTC, and these include restaurants and stores, hotels, and more. There are over 430 BTC ATMs in the Bay Area, and these include 65 in the city itself.

 

Amsterdam

Here, we have the mining hardware maker Bitfury and the European headquarters of payment service provider BitPay. Coinmap is identifying more than 40 places where you can spend your BTC, including bike repair shops, barbers, and coffee shops, among others.

The city’s 840,000 residents have about half a dozen bitcoin ATMs available to them. Merchants in Utrecht, Rotterdam, and The Hague also accept crypto.

 

Vancouver

Vancouver is another city in which the mass adoption of Bitcoin and crypto is flourishing. Here in Canada, Bitcoin has a really strong community, and the nation has taken a lot of regulatory steps to embrace the digital asset. It’s also important to know the fact that Vancouver is home to QuadrigaCX, the defunct crypto exchange that lost $180 million in client funds. This happened after the alleged death of its founder.

According to the details revealed by Investopedia, there are over 50 merchants who accept BTC in Vancouver or around the nearby suburbs and 221 locations to buy the digital asset. In fact, the world’s first bitcoin ATM began operations at Waves Coffee House on October 29, 2013, in downtown Vancouver.

 

Ljubljana, Slovenia

Ljubljana is a city in Slovenia where crypto is also thriving, believe it or not. In the capital of Slovenia, the massive Bitcoin exchange Bitstamp was founded by the Slovenians before they set up operations in London and Luxembourg. There are also BTC ATMs in the city and the surrounding areas.

More than 200 merchants said that they are accepting crypto.

 

Tel Aviv

This is the financial center of Israel, and it’s also one of the world’s leading cities for startups. It has 19 merchants that accept BTC, and there are 7 BTC ATMs in a population of more than 541,000. One other issue that is interesting to note is the fact that the Israel Bitcoin Meetup Group in Tel Aviv is among the most active in the world, with more than 4,000 members.

 

Miami, Florida

This is a major metropolis, and it has more than 12 merchants who claim that they accept Bitcoin. There are more than 650 ATMs for Bitcoin, and the city is also home to the Miami Bitcoin Conference. Just in case you did not know, this is one of the oldest and largest conventions of the cryptocurrency industry. The city’s government has a lot of plans involving crypto, and one of these includes getting more and more ways to attract blockchain businesses to their city. A lot of things have been made in this direction, and Mayor Francis Suarez has proposed investing city funds in bitcoin and even launching a municipal cryptocurrency.

 

El Zonte, El Salvador

El Salvador is a country that has been featured in the headlines a lot in 2021. The country is one of the biggest Bitcoin and crypto supporters out there. It recently declared Bitcoin as legal tender, and this boosted the mass crypto adoption to the moon. Crypto enthusiasts are certain that more and more nations will be doing the same soon.

Anyway, El Zonte is seeking to rebrand itself as Bitcoin Beach these days. This is the world’s first BTC-centered economy, and it comes following a massive crypto donation to the municipal government.

The town got its very first BTC ATM back in 2020. It’s important to note the fact that one of 1500 of the ATMs was installed around the country as El Salvador moved to adopt the cryptocurrency as legal tender.

This means that Bitcoin can now be used to pay taxes, and foreign investors will not be subject to capital gains taxes. It’s also worth noting the fact that the national government has also worked with entrepreneurs to introduce a simplified bitcoin wallet for low-fee transactions.

 

London

London flaunts 8.9 million residents, and there are 50 BTC ATMs here. About the same number of merchants are now accepting BTC for payments. There are important startups that are built in the country, which include Coinfloor. This claims to be the oldest BTC exchange in the UK. There are also a lot of BTC and crypto meetup groups in London as well.

 

New York City

This is a financial tech hub that hosts 8.4 million people. They can spend their Bitcoin at about three dozen merchants who are in the metro area. These include the Bitcoin Store in lower Manhattan and CryptoART in Morningside Heights. New York is also an extremely important hub for crypto startups and media companies, such as CoinDesk, Decrypt, and CoinTelegraph, as well as home to Consensus, one of the largest annual events in the crypto industry.

 

Dubai, UAE

Dubai is basically the crypto heaven for Bitcoin enthusiasts. There are so many reasons for this, and we’ll explore the most important ones below.

Thanks to its openness to trade and low taxes, the United Arab Emirates has the 10th-freest economy in the world, according to the Index of Economic Freedom.

Governments in the UAE openly encourage foreign investment, and cities like Dubai are well known for their entrepreneurial spirit.

UAE is one of the most luxurious and desired places on earth to be at the moment. There are a lot of reasons for which you will want to spend your wealth here.

Also, if your dream is to buy a property in the UAE, crypto is definitely the safest option for purchasing and making payments. There are many reasons why real estate investors opt for it these days to keep the transaction process secure.

Purchasing real estate properties in the UAE using crypto is a fantastic choice thanks to its cost-effectiveness and saving extra energy and time that the process usually requires. Acquiring possessions and settlements of the properties is a challenging process otherwise.

But on the blockchain, after the payment is approved, there will be an instant transfer of the property, and you will be the sole owner. No delays are at stake and there are a lot of specialized platforms out there these days that are making sure of all this.

Interested clients can focus on the purchases that they want to make, while specialized entities are taking care of the rest.

Using crypto to buy a property in the UAE, especially if you are an international buyer, will be highly cost-effective. This is extremely important especially in 2022 when the world is seeing so many financial issues amidst various world crises.

Using crypto costs less on international transfers and payments than traditional ones. Usually, banks charge hefty fees, but when you use crypto, you will not have to bother about such aspects involving extra charges. Cryptos make instant transactions possible at low prices.

 

Dubai is a crypto haven for enthusiasts – main reasons

Experts conclude that Dubai, the wealthy city in the UAE, is one of the best places to be if you are a crypto enthusiast who is looking to live on digital assets.

“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),” said a source who spoke to BeInCrypto on the condition that they would not be named.

“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 directly for bitcoin is very unique and in many western countries not even possible,” they added.

Dubai is a growing crypto hub

Dubai and UAE, in general, are attractive crypto destinations, and this is mainly due to the ease of converting Bitcoin and most cryptos into cash with low fees while 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 important changes these days.

The whole crypto space has been shaken by the decision that the EU Parliament took a few days ago. The members of the EU voted for new regulatory measures which turn out to prohibit anonymous crypto transactions.

Decrypt online magazine notes that the vote was first reported by CoinDesk, and soon after 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 mentioned above.

It’s also important to note the fact that the votes on a few amendments were tight, but still, the final draft was overwhelmingly approved.

Europe is seeing some changes that will definitely affect the crypto space a lot, and investors are not happy – this is one of the reasons why the UAE is an excellent destination for crypto enthusiasts these days.

Trading crypto in Dubai

Exchanges generally require a basic know-your-customer (KYC) identity and “nothing more.”

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,” a source told BeInCrypto during an interview.

The crypto exchange mentioned above charges a general fee of 3%. 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 really important to note the fact that crypto use in Dubai is so fluid that the central government has adopted deliberate strategies to advance mainstream usage.

 

No questions and no tax on income and capital

It’s also important to mention the fact 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 easily and enjoy all the benefits of developing it in the UAE.

The entity called Kiklabb also leases office space to its customers on board the Queen Elizabeth 2 cruise liner anchored at Port Rashid in Dubai. The amazing 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 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.

A lot of investors have been making great gains via crypto, and lots of them are looking to cash out. Dubai is offering great opportunities in this direction. Check out the most popular questions about crypto, finances, and Dubai below.

 

 

Getting residence in Dubai and eliminating crypto taxes – FAQ

 

How are personal gains treated in Dubai?

At the moment, Dubai has 0% personal income taxes. This means that if you are a resident here, regardless of the gains that you are making, there is no personal income tax.

Regardless of the fact if you are actively trading or only hodling, there are zero taxes on capital gains, and this applies to salary and business income as well. The gross income figure is the same as your net figure. Other tax authorities are treating gains from cryptos with capital gains tax, but you will not see this happening in Dubai.

This is obviously one of the main reasons why wealthy people are setting their eyes on this location.

 

How can people benefit from low BTC taxes?

Tax laws focus on facts, and this is extremely important to understand. Most of the personal taxes are levied based on the residency state of the person who is taxed. It’s also important to note that the Tax Authority of the country you are currently living in at the moment, probably has the right to tax your income based on the local tax laws.

Each country has its own laws to determine tax residency. They will be analyzing issues and elements such as the following: the number of days you spend there, whether you are the owner of a house there, or if you have economic or social ties. In case you want to benefit from low Dubai crypto taxes, all that you will have to do is migrate from the current location there.

What is the moving tax residency?

By factually migrating to Dubai, you can change your tax residency. The only real question that you have to ask yourself is the following: what do you need to do in order to no longer be a tax resident according to your current country’s rules? There are some cases in which there could be an exit tax.

 

What are the best financial advantages to moving to Dubai?

Dubai has a great tax system for crypto enthusiasts, and people will definitely love it. The system of zero corporation tax and zero income tax, no capital control restrictions – these are only some of the perks that you will enjoy in Dubai. It’s also important to note the fact that you can send and receive as much as you please.

Dubai has a well-established regulatory framework for digital assets.

We can easily say that Dubai is the only country for crypto investors that is easy to move to with legal certainty, no income taxes, and no reporting requirements.

 

How can you become a tax resident in Dubai?

Each and every country has its own requirements for people to become residents there. This could turn out to be an investment in real estate, getting a job, or starting a business as well. The best way for an investor to become a resident in Dubai is to register their company in one of the Free Zones. Companies that are situated in these locations can rent office space in the UAE. Based on this office space that the company is entitled to, apply for residency visas for you, your family, and employees as well.

These things will give you the right to stay in the UAE. More than that, there are also various affordable flexi solutions that are called flexi-desks.

The bottom line is that after you have moved to Dubai, you become subjected to Dubai tax and reporting requirements on your personal holdings.

 

How can this apply to crypto investors?

First of all, you have to begin by setting up a free zone entity with the correct trade activity. There are a lot of activities possible, and all you have to do is dig a little for some research. You will have to set up a company in order to obtain residency. You will be the shareholder and manager of the company, and after it’s established, you will be able to apply for a residency visa.

As we noted above, platforms such as Crypto Expat make sure that interested clients get the best out of their experience in Dubai – one of the best locations to enjoy your digital assets, even for purchasing properties.

There is zero corporation and income tax in the UAE, and there are no reporting requirements of your personal investments in crypto to any authority in the UAE.

The only catch is that you have to renew the company every year and pay the appropriate licensing fee. You have to maintain any obligations regarding the visa.

 

Closing words

Bitcoin’s first block was mined back in 2009, and since then, the king crypto has been able to see substantial improvements. The impressive rate of digital asset adoption suggests the fact that crypto is here to stay. It’s also not a surprising fact that international financial centers have embraced Bitcoin. More nations understand the importance of getting on board the crypto wagon these days and things will definitely get spicier with each passing day.

Tesla CEO Elon Musk had an important message for governments all over the world at the end of last year. As you probably know by now, Musk has been a massive crypto supporter for a while now, and he has been using Twitter even to manipulate the crypto market. He was usually criticized for such kinds of moves.

The mogul who just became the most significant Twitter shareholder said that while the advancement of digital assets can be slowed down, crypto cannot be destroyed now.

“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government. They don’t like that,” news portal decrypt.co quoted Musk as saying on September 29.

He reportedly continued and revealed the following:

“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.”

Anyway, as a conclusion, in 2022, you definitely need digital assets. Besides the fact that crypto is a great investment, one of the best that you can make these days, Bitcoin turned out to be an important safe haven and a hedge against inflation.

Bitcoin started out as a bold project, but at its beginnings, it was seen as extremely volatile. Times have changed, and so did crypto and the digital assets will continue to evolve.