Satoshi Nakamoto launched Bitcoin (BTC) in 2009 as an alternative to traditional finance. He aimed to take back control from the elites and give the common person a chance to take part in a secure, decentralized, and transparent financial system. More than a decade later, the financial revolution he started is currently under siege by regulators. This prompted a lot of stakeholders to seek crypto-friendly jurisdictions and Dubai is a prime destination.
Recent actions by U.S. regulators are creating a lot of fear and uncertainty in the crypto industry, and those who have a lot staked are looking for ways to safeguard their assets. Financial hubs like Switzerland and Singapore have been attracting a lot of crypto investors, but Dubai is grooming itself to be a good if not better alternative.
An Oasis in the Desert
Dubai is one of the seven emirates that make up the United Arab Emirates (UAE). It was established as a fishing village in the early 18th century and grew into an important trading hub due to its strategic location between Europe, Asia, and Africa. In 1833, Dubai became a dependency of Abu Dhabi and was later incorporated into the UAE in 1971. Oil discovery in the 1960s fueled Dubai’s growth, allowing it to progress from a small trading hub into a major commercial and financial center. Modern Dubai is known for its impressive skyscrapers, luxurious shopping malls, and thriving tourism industry.
The city has positioned itself as a technology and innovation hub in recent years, with the government launching various initiatives aimed at fostering entrepreneurship and attracting foreign investment. The Dubai Future Accelerators program, for example, brings together startups and government entities to work on innovative solutions to key challenges facing the city. The Dubai Blockchain Strategy, meanwhile, aims to make Dubai the first city in the world to conduct all of its government transactions via blockchain. These initiatives have helped to position Dubai as a leader in the field of technology and have attracted a growing number of entrepreneurs and investors to the city.
Dubai Tax Incentives
It said that only tax and death are certain in life. Fortunately, Dubai offers an escape from one of them. The Emirati State is so rich that it could afford to waive some taxes for its residents.
- Dubai does not levy income taxes on individuals, which is good news for workers who dislike seeing 10-30% of their income deducted before they receive it.
- There is no capital gains tax. Dubai does not impose a capital gains tax on the sale of assets, including crypto. Investors can sell their digital assets without incurring any additional tax liability, which can help to improve their returns.
- No withholding tax. The city does not impose withholding tax on dividends, interest, or royalties. Crypto investors who receive income from their investments are not subject to any additional tax liability.
The Government Aims to Promote Not Stifle Innovation
Ambiguous crypto regulation is one of the biggest obstacles to crypto adoption. Instead of aiming to educate users and promote growth, regulators have opted to prosecute digital assets companies in the name of consumer protection. Dubai, on the other hand, has chosen to harness the benefits of digital assets. The government has passed a law that gives regulatory clarity to a misunderstood industry.
The new law gave rise to The Virtual Assets Regulatory Authority (VARA). It is the world’s first independent virtual assets regulator. Its objective is to make Dubai a hub for virtual assets by empowering investors and increasing consumer awareness. The city’s proactive method is a stark contrast to the White House’s cautious approach.
Binance has recently received a Minimum Viable Product license (MVP) from VARA. This would allow the crypto platform to offer a range of approved digital services to qualified retail and institutional investors.
Dubai is Top City for Expats
Internations, an online expatriate community with 4.8 million members, has released a report that ranks the best cities to live in. The report is based on a 2022 survey of 12,000 respondents. Dubai ranked second overall and is described as great for both work and leisure.
Crypto investing involves a lot of internet usage. Trading and researching are both dependent on a stable internet connection and it is good to know that Dubai has an average of 118.52 Mbps speed according to statisca.com.
Safety and security are also not a problem in the Emirati City. The crime rate is one of the lowest in the world. Crypto investors don’t have to worry about being held at gunpoint for their seed phrase.
There are also a lot of things to do and see in Dubai. The Burj Khalifa is the tallest building in the world and is one of the top tourist attractions. Desert adventures like camel and ATV tours are also popular. It is also host to a lot of luxury brand shops and well-known restaurants.
Should Crypto Investors Book Their Tickets?
Dubai is a top choice not just for crypto investors but for tourists and professionals too. It is truly an oasis in the middle of the desert. Its leadership recognized that digital assets are tools that can benefit the city and its residents. The city has done a good job of creating a law that aims to promote innovation instead of leaving stakeholders confused on what are the right steps to take. Its progressive stance on taxation is also a big plus for those who wish to maximize their profits.
Before you pack your bags, remember to consult an immigration and taxation professional. Because some countries would still require you to file a tax return even if you are residing abroad. But overall, Dubai is ticking all the boxes being sought by crypto investors. If you don’t mind the hot weather, then this might be a good option.
*This article is not financial or immigration advice. It is for educational and entertainment purposes only. Consult a professional for your needs.
You may be interested to read more about the below topics
- Crypto Industry is Under Siege by Regulators
- Hong Kong plans to make crypto purchase and trading legal for all of its citizens
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