Because The New Rule Just Tightens The Existing Ones, Agents Should Not Have Any Issues Complying.
Dubai: A leading lawyer predicts that the UAE’s initiative to regulate cryptocurrency payments in property deals would be successful right away because the industry is currently well regulated. The UAE said on Monday that real estate brokers would need to notify the specialized unit in charge of monitoring anti-money laundering operations of any property purchase that is paid for using cryptocurrency assets. The law covers all individuals, businesses, and transactions exceeding $15,000.
According to Michael Kortbawi, Partner just at law firm BSA Middle East, “this is being done to have more compliance and know the source of income.” “Every individual who trades or purchases real estate in Dubai is listed in the regular banking system. However, if you are from the cryptosphere, part of the money might be prohibited.
The fact that Dubai’s real estate market is already highly regulated, according to Kortbawi. Who specializes in insurance and purchases, makes it simpler to enforce new regulations. When it pertains to financial transactions, the agents are required to abide by numerous rules.
By obtaining multiple crypto exchange licenses, the UAE has been making an effort to formally establish its cryptocurrency sector. Binance Holdings acquired preliminary authorization from Abu Dhabi International Market in April to function as a broker-dealer in assets. A virtual currency service provider license had already been granted to FTX, Binance’s main rivals, in Dubai before then.
Cut Back On Your Use of OTCs
According to Kortbawi, Dubai authorities are reducing investors’ dependency on over-the-counter brokers by making room for legitimate cryptocurrency exchange companies. “The market will become more controlled. There will be fewer people getting cheated or unable to receive their money from the cryptocurrency they sold.”
A number of other problems have been associated with the emergence of cryptocurrencies. Including market manipulation, fraud, and risks associated with money laundering. The trafficking of illegal commodities, hacking, identity theft, and fraud, as well as uncontrolled business practices. They now face further scrutiny from financial authorities and other organizations because of this.
Consultancies have repeatedly emphasized the value of including industry participants in the creation of rules that control them. Authorities in the UAE appear to be doing just that. A regulator constantly consults with everyone. In addition, we have had discussions regarding cryptocurrencies and other technology with regulators from several countries, according to Kortbawi.
Global central banks are being forced to raise interest rates because of the excessive inflation that caused a drop in cryptocurrency prices in June. Bitcoin is presently priced at about $24,000, down from its November 2017 high of almost $64,000.
While the crisis has diminished the asset’s “public appeal,” serious investors will still engage in trading, according to Kortbawi. “The movement’s core group of truly hard-core investors will keep doing it, but the appeal to the general public has decreased as a result of their realization that they cannot no longer double or quadruple their money. Perhaps the tide will turn soon, but given the current state of the economy, it is difficult to predict anything.