The crypto currency industry has become a growing and popular trend in all high-end global cities. Since Dubai as one of the upscale cities, is not immune to this and especially after the announcement of a unique law last March, under which major crypto currencies such as Bit coin and Ethereum can be used to buy goods or services, large and valuable things, such as homes. It provide buyer’s and seller’s consent to make a transaction using any type of crypto currency.
Some real estate sellers have no problem getting their payments in the form of crypto. Many property developers are seeking to offer the option to pay and deal with these new methods because allowing crypto currency payments will provide more options and convenience for real estate investors, as mortgages and cash are no longer the only way to buy a home.
Some real estate developers who accept crypto currency payments will make a sale, purchase agreement in UAE Dirhams, and receive cash, but they will run KYC programs that help to verify electronically the customers’ identity and recover data for individual and corporate customers in a safe and transparent way. KYC regulations are obligatory for major crypto currency exchanges because they ensure compliance with rules and regulations, and offer crypto currency as a means of payment via a third-party crypto currency broker.
The UAE Central Bank does not approve the use of virtual currencies as a means of payment or for conducting online transactions. Therefore, seller and buyer must go through a licensed trading company for encryption .There is no regulatory activity in Dubai that limits or regulates the use of crypto currencies.
Since the United Arab Emirates does not officially allow the use of crypto currency to buy properties it is important to note that crypto currency has already been converted into cash on the crypto currency exchange before conversion.
In a related context, the Land Law must be amended to allow crypto currencies as an official and direct payment way.
There are advantages that we will notice once crypto currencies become an acceptable payment way for real estate transactions. Digital transaction costs are much cheaper than other traditional payment methods, and they charge less than traditional financial institutions to transfer money.
For those who want to make their real estate transactions using crypto currencies, it is important and necessary to choose a reliable and reputable crypto trading company that has previously made crypto transactions. These transactions do not require much paper, so they are less time-consuming and trouble-free procedures. Digital sales are convenient because they can be made quickly and easily.
Crypto currency assets are very valuable and increasingly in demand because they have become a welcome source as some sellers are willing to convert their crypto currencies into dollars alongside selling their properties. Others may consider it an adventure they want to take, while others wait for appropriate time to convert their Crypto and make a profit from them.
The crypto currency is unstable, so you may want to convert your assets into a different type of asset like a house that allows you to secure your profits more reliably. Bit coin or other crypto currencies may rise in value, but they may also fall, forcing you to make a payment using your crypto currency. You can convert your crypto asset into a less volatile real estate asset; buying property for yourself, is also an investment.