There are many real estate brokers in Dubai who offer to buy/sell properties using cryptocurrencies. Although this attracts crypto-rich investors not only from Dubai but around the globe, such transactions are still looked upon with scepticism. The question is: can you buy properties with Bitcoin in Dubai?
Yes, you can purchase properties with bitcoin as many brokers in Dubai are accepting payments in cryptocurrencies. But no, it is not officially permissible by the UAE government. So, you cannot record your transactions in crypto terms.
Should we buy properties with bitcoin?
Although several brokers are accepting payments in cryptocurrencies, however, it is still considered risky. The Crypto market is highly volatile; if a value of a certain cryptocurrency falls or rises vigorously in a short period of time, there is a high chance that the contract will be broken. This volatility makes such contracts unreliable.
This means that the practice of buying properties with bitcoin is still premature. We have to see what time and circumstances unfold before relying on it with trust. To quote Betterhomes Group Managing Director Richard Waind, “volatility in crypto markets, as seen so dramatically in recent weeks, makes such deals challenging in reality.”
How does crypto deal with UAE’s Anti Money Laundering Laws?
If you are planning to purchase a property with bitcoin or any other currency, you should be familiar with anti-money laundering laws issued by the Central Bank of UAE. To remain conformed with the law, a broker cannot accept payment directly in digital currency. What happens on the ground is that they convert the value of the cryptocurrency into dirhams and then accept payment of the same value.
What does this mean?
This means that even when a broker says he is accepting transactions in crypto, he really is not. He will still receive payment in dirhams to put it on record. Currently, accepting crypto payments means paying the equivalent amount of cryptocurrency.
Why is this so?
Dubai Land Department has made it clear that no developer has approached them to conduct their business through cryptocurrency. According to UAE’s law, all transactions must occur in local currency. Crypto transactions cannot be licensed or recorded in UAE, as of now.
So, the question: can we buy properties with bitcoin in Dubai or UAE? Yes, you can.
But should we make such a purchase with bitcoin? No, our advice is to refrain from it.
Does crypto have a future in the real estate market of the UAE?
As of yet, it cannot be stated with certainty. There is no clarity on the regulatory framework of the crypto world. Until there are strict global laws introduced, no crypto transaction could be deemed reliable or risk-free.
That concludes it. This is a topic that would need updating every now and then. We hope this article helped you in your general assessment of crypto’s role in the real estate market. For any sort of real estate consultancy, feel free to contact a skyloov agent.
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