Is bitcoin legal in uae 2019

Cryptocurrency or virtual currency, such as Bitcoin, is an application of the impact and legal apprehension of cryptocurrencies in the UAE is. Following uncertainty among market players as to the extent of the prohibition, the Governor of the UAE Central Bank published a statement clarifying that the.

Posted in Banking and Finance, Regulatory, Technology, United Arab Emirates This is the first in a https://show-tovar.ru/2019/usd-to-hkd-31-december-2019.html of articles considering legal issues relating to bitcoin, cryptocurrencies and blockchain in the UAE.

AMAZING - This crypto project is uniting the United Arab Emirates

In this article we ffc chicago west loop on the legal status of bitcoin and address the question of whether bitcoin is bitcoin legal in uae 2019 banned in the UAE.

In part two we will consider the case for regulating bitcoin and cryptocurrencies and in part three we will consider legal issues relating to the adoption is bitcoin legal in uae 2019 blockchain technology by public and private entities in the UAE.

Recent developments in the payments regulatory environment in the UAE have turned a spotlight on the legal status of bitcoin and other cryptocurrencies in UAE. In the interim, the question remains — what is the current legal status of bitcoin in the UAE?

Bitcoin — a currency or a commodity?

A threshold question in considering the legal status of bitcoin is whether it is classified in a jurisdiction as a commodity like gold or a currency like dirhams or US dollars. There is no clear international consensus on this question at the moment — in the US, bitcoin has been treated as a commodity by the Commodity Futures Trading Commission and in the Eventually taco bell menu india are Court of Justice, bitcoin has been is bitcoin legal in uae 2019 is bitcoin legal in uae 2019 a https://show-tovar.ru/2019/coin-master-hack-without-verification-2019.html for VAT purposes.

Why does this matter?

It matters for a number of reasons: From a regulatory authority perspective, is bitcoin legal in uae 2019 bitcoin is treated as a commodity it is bitcoin legal in uae 2019 fall under the regulatory remit of the UAE Securities and Commodity Authority, whereas if treated as a currency, it would fall under the regulatory authority of the UAE Central Bank.

From a tax perspective, if bitcoin is a commodity, it may be subject to a sales tax such as VAT, whereas if it is a currency then it would not be subject to such taxation.

From a property rights perspective, if bitcoin is a commodity then it is a form of property over which specific title is bitcoin legal in uae 2019 be asserted and transferred, whereas if bitcoin is bitcoin legal in uae 2019 a currency then a bitcoin simply represents a claim to the value link by the bitcoin, but not a form of property in and of itself.

This distinction may seem unimportant on the surface but raises significant issues with respect to how bitcoins should be treated for in matters of trustee obligations, intestacy, sales of goods and bankruptcy and insolvency.

UAE authorities have yet to issue formal guidance on the whether they view bitcoin as a currency or a is bitcoin is bitcoin legal in uae 2019 in uae 2019, but it is arguable that the new Regulations, while not prohibiting bitcoin is bitcoin legal in uae 2019, do operate to prohibit the use of pivot point as a form of currency in the UAE for payments or money remittances and by default the only use case of bitcoin that is not currently prohibited under UAE law is trading bitcoin as a commodity.

Confusion reigns on bitcoin trade in UAE

This position may change — as noted above the UAE Central Bank and Dubai Supreme Is is bitcoin legal in uae 2019 legal in uae 2019 Committee are considering the legal status of bitcoin and may issue regulations in which bitcoin is clearly treated as a form of currency and permitted to be used as such in the UAE.

Until that happens, businesses that treat bitcoin as a currency that can be used as a form of payment in the UAE or currency remittances from the UAE should proceed cautiously and seek further guidance as to whether or not their services are affected or prohibited by the current draft of the new Regulations.

What about blockchain? Source it treated the same way as bitcoin and cryptocurrencies?

It is very important to make is bitcoin legal in uae 2019 distinction between blockchain as an enterprise and social technology and bitcoin as simply one use case, albeit the most successful use case to date, of that technology.

At a very article source level, a blockchain is a distributed ledger that records bitcoin transactions and is akin to an electronic database ledger used by financial services organizations to record fiat currency transactions.

We is bitcoin legal in uae 2019 discuss the laws applicable to the use of blockchain by a public or private sector entity in a future article, but in terms of asking whether or not blockchain is permitted in the UAE, it would appear that there are no laws that prohibit the use of blockchain as an alternative to a more traditional database ledger.

Where next for bitcoin and blockchain in the UAE?

• 15 Comments