UAE authorities tighten control over the purchase of real estate for cryptocurrency

The initiative was adopted to make the fight against money laundering more effective

09.08.2022 - 09:40

389

1 min

What’s new? The authorities of the United Arab Emirates (UAE) have introduced new rules to monitor real estate trades. Realtors, brokers, and law firms are required to file reports with the Financial Intelligence Unit (FIU) if a purchase exceeding 55 000 AED (~$15 000) is paid in whole or in part in cash or cryptocurrency. The new measures are aimed at improving the effectiveness of anti-money laundering and countering the financing of terrorism (AML/CFT).

UAE government’s press release

What is known about the new initiative? Abdullah Bin Tuq Al Marri, Minister of Economy, has said that the authorities are committed to meeting high international standards because real estate is a vital pillar of the country’s economic development, being one of the key sectors for investment.

In April, one of Dubai’s largest real estate developers, DAMAC Properties, began accepting payments in cryptocurrency. The decision comes in line with the initiative to use innovative technologies for customer convenience.

In June, another developer, Binghatti, joined it. In the initial stages, both companies will only accept bitcoin and Ethereum, and when concluding trades convert them to fiat.

Author: