Dubai Will Soon Begin Accepting Bitcoin As Payment In Its Property Sale

If you are a crypto enthusiast, then you are most likely to be cognisant of the fact that crypto assets have come a long way from its inception. Crypto assets such as Bitcoin  that was built to challenge the regular norms of government and financial institutions, is now being bought over by large financial institutions such as J.P. Morgan and Goldman Sachs. 

Not only financial institutions, but several governments are acknowledging crypto assets and are setting regulations to streamline the use of crypto to make purchases across everyday use products. One such country – the United Arab Emirates, specifically Dubai, has been making tremendous efforts in accelerating the adoption of crypto in the city. In fact, Dubai’s leading real estate developer DAMAC properties has announced that it will accept cryptos (Bitcoin, Ethereum) for sale and purchase of its properties. 

For crypto enthusiasts, this is a proud moment because after a decade-long journey of fighting against the government, developed cities are promoting buying properties with Bitcoin. To know more about all of this, continue reading the article. We will first learn about what was the motivation behind implementing such a rule, which other countries are implementing this policy and how Dubai is planning to make further developments to promote and accelerate the use of crypto assets. 

Buy Property In Dubai With Crypto

The Dubai Virtual Asset Regulation Authority (VARA) has been formed to protect investors legally against any fraud. This has led to higher usage of virtual assets such as cryptos. VARA governs and regulates all transactions happening in special development zones and free zones of Dubai. 

As for DAMAC property, some officials have stated that introducing another mode of payment such as Bitcoins is a direct motivation to entice younger generation investors who are comfortable with crypto assets. DAMAC envisions cryptos to be a separate asset class in future and recognises its value against fiat money. 

Flexible payment options in purchasing property will bring a wider range of investors globally for DAMAC properties. As a matter of fact, countries in the Middle East make up for as much as 7% of the crypto trading volumes globally. It is believed that the Middle East is the fastest growing crypto market globally. 

Rise of Crypto Exchange Listing In Dubai

Just as we discussed how the Middle East accounts for a significant proportion of crypto asset trades. That information coupled with the announcement of DAMAC properties has inspired several crypto exchanges to apply for a licence to set up a crypto exchange in Dubai. 

Following the announcements by DAMAC, international exchanges such as Binance and FTX Europe too have secured a licence to set up operations in Dubai. Furthermore, exchanges such as ByBit and Oasis have also announced that they have applied for a licence under VARA to set up a crypto exchange business in Dubai. One announcement made by DAMAC properties has brought about a ripple effect in the crypto world. UAE has opened gates to several investors who are now buying properties with Bitcoin.  

Not only investors but bankers and financiers who can help provide funding for investors are also planning to set up shop in Dubai. One such company – Kraken has received regulatory approval from Abu Dhabi Global Market (ADGM) and financial service regulatory authority to become the first crypto exchange that will provide direct funding and trading options to investors in Dirhams (UAE’s local currency) against bitcoins. 

For all those who are wondering who DAMAC is, let us learn more about this visionary company. 

About DAMAC Properties 

Established in 2002, DAMAC properties, a part of DAMAC group has been a forerunner in delivering luxury real-estate properties. It has received several awards for its commercial, residential and leisure properties across several regions such as Saudi Arabia, Qatar, UAE, Jordan, Lebanon, Maldives, United Kingdom as well as Canada. Till date DAMAC properties has built over 39,000 homes in collaboration with world famous designers such as Versace, Cavalli, Paramount Hotels & Resorts, etc. The company is on a mission to create luxury housing for the next generation. 

However, buying properties with Bitcoin is not a new phenomenon for the world. Last year in November, Latin American property technology leader – La Haus made an announcement that it will accept bitcoin as a payment for homes that are integrated with Bitcoin payment processing technology Open Node. The company sold its first property in Bitcoin for 5.78 BTC for an apartment sold in Mexico, later that month they made another sale in Colombia for Bitcoin. 

Key Takeaway

The bottomline is that the world is moving towards a crypto friendly ecosystem by integrating crypto’s use to real-world purchases. Just imagine living in a country that has hyperinflation such as Zimbabwe, Venezuela, Argentina, Yemen and more. As a citizen, your investment in an asset such as a house, that is of significant value, can go to complete waste if the currency of that country falls. However, with purchase of properties made via Bitcoin you can be rest assured that the currency will not face hyperinflation as there are a limited number of coins that can be minted in the world. As an investor, your investment is secured. 

Therefore, such a move by DAMAC properties in Dubai is an indicator of the good future that cryptos hold. However, as an investor it is very important to make sure that you not only make the right investment in the right coin but also choose a secure crypto exchange such as Zebpay – India’s leading crypto exchange that adopts  safe and secured technology that safeguards investor funds. 

To know more about crypto assets, start your journey by visiting Zebpay

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

ZebPay Weekly

Subscribe for latest crypto news & stay updated!

    Start Trading Now