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.
Dubai World Trade Centre to become a comprehensive zone and regulator for virtual assets and crypto including digital assets, products, operators and exchanges https://t.co/tSzONymOvi https://t.co/l2jYliywGG
— Dubai World Trade Centre (@DWTCOfficial) December 22, 2021
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.