Is Cryptocurrency legal in Dubai?

Is Cryptocurrency legal in Dubai?
Globalization has handed to mankind a handful of newbies beyond our expectations. As digitalization keeps winning in the hurdle of technology, several businesses and ideas have nested their creatives in the never relenting energy of innovation. 

Innovation has been the wheel of growth for any establishment and just like every new idea seeks acceptance and validation, globalization has made the spread of the information free and accessible before people could consider or get affirmation to its verification; a typical example would be the acceptance of digital currencies and their verification as a legal tender by their financial control bodies. 

Dubai has been known for growth and you can tell a lot by how its economy has been thriving. this can be attributed to many factors amongst which is the acceptance of innovative ideas to transform the norm for quantum leaps. In the same angle, Cryptocurrency, a new digital currency fueled by blockchain technology has found Dubai as a stable for transactions, while we are fully aware that its acceptance has been immense, there are still some levels of worry to some seeking clarity on the verification of this new digital currency. 

In this article, I will be clearing your doubts on cryptocurrency in the UAE and its stand in Dubai. 

What is Cryptocurrency? 
Cryptocurrency is a digital or virtual currency that is secured by cryptography to exempt the possible thoughts of counterfeiting. With the aid of blockchain technology, cryptocurrency has proven to be secured and immune from governmental policies. 

Cryptocurrency is the fusion of two words, Crypto, which is culled cryptic which means something not easy to the solve-like puzzle, and the latter being a currency, which is a legal tender. 

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Is Cryptocurrency illegal in Dubai? 
The regulatory agencies' main challenge had always been how best to determine what type of financial or economic instrument cryptocurrency should be classed as. While some governments handle cryptocurrencies as if they were any other money, giving them the same status as a fiat currency, or they could be identified as stocks or commodities. 

Even though some nations have established legal frameworks to accredit such transactions, others have posed unaware of blockchain technology, and some countries believe that the currency should be considered as a legal tender. 

It would be fair to note that In October 2018, Dubai launched EMCASH, a virtual currency that can be used to pay for tuition and governmental services. In addition, another form of virtual money was created in December 2019 for cross-border transactions with Saudi Arabia, which affirms the acceptance of cryptocurrencies in Dubai. 

Is cryptocurrency secured by Dubai law? 
I know you want a soft landing on the stance of the Dubai law to the digital currency, perhaps this would come in handy. In 2017, the DFSA [Dubai Financial Services Authority] had published a General Investor Statement on Cryptocurrencies, which identified some crypto assets and offers as high risk. The DFSA was also careful to assess each crypto asset on its own merits and does not regulate or license businesses that go public with their ICO [Initial Coin Offering] prospectus to raise funds. 

While there is bound to be some skepticism, Dubai recently in their bid to close that knowledge gap, held an AIBC summit. 
According to Euronews. Next, during the AIBC summit, Brock Pierce, Chairman of Bitcoin Foundation & co-founder of Tether &Mastercoin, says he urges people to research and form their own opinion on cryptocurrencies. 

“The greatest method is to learn more about what's going on so you can make an educated decision for yourself., and then, armed with that information, you'll be able to decide whether or not, you know, you agree that this is, you know, going to be a significant part of the future, which clearly I do.”

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