The United Arab Emirates (UAE) has been launching a more extensive venture into blockchain and cryptocurrency technologies in the past decade. The cryptocurrency market cap is currently over 1 trillion U.S. dollars. However, western countries like the U.S. are slow to build and implement appropriate regulations for crypto trading. This creates a significant window of opportunity for forward-thinking cities like Abu Dhabi and Dubai to begin developing a unique blockchain infrastructure.
- There are no restrictions on cryptocurrency operations in the UAE.
- Individual taxes do not apply to residents of the UAE. The corporate tax rates depend on the total taxable income.
- You can now start accepting crypto payments and enjoy a variety of tools that are available on NOWPayments.
Can I Accept Crypto Payments in UAE?
Yes, UAE citizens and residents can freely send and accept crypto payments.
The Central Bank of the UAE (CBUAE) started regulating cryptocurrencies in 2017. According to the 2017 law, all transactions involving these digital assets had to be conducted through licensed exchanges and adhere to anti-money laundering regulations passed by the CBUAE. Cryptocurrencies are explicitly not illegal, according to the CBUAE, despite neither granting them a license nor recognizing them as legal tender. The crypto community is expecting a more explicit regulation to come out in 2023.
The Dubai Virtual Assets Regulatory Authority (VARA) was also established as a result of the Virtual Assets Law of 2022. The independent regulator VARA is in charge of overseeing, governing, and issuing licenses for virtual currencies, NFTs, and other assets in Dubai. One of its goals is to entice investment and businesses that deal in virtual assets to operate in Dubai.
Meanwhile, the postal service of the United Arab Emirates became the first in the Middle East to publish nonfungible token (NFT) stamps in honor of the federation’s 50th birthday. Additionally, the CBUAE disclosed that it would begin testing a national digital currency.
There are no restrictions on using cryptocurrencies in the UAE because these activities are both implicitly and explicitly regulated. As a result, UAE residents can buy, sell, and invest in cryptocurrencies. Residents of the various emirates, such as Dubai, are therefore permitted to own and invest in crypto assets.
Tax on Crypto Assets in the United Arab Emirates
As it only charges corporate tax to oil companies and foreign banks, the UAE is known for not taxing individuals’ income. The corporate tax applies to all commercial business activities in the UAE. According to the Ministry of Finance, the rates for corporations are as follows: 9% for taxable income over 375,000 AED and 0% for taxable income up to that amount in AED.
Since September 2021, some free trade zones in Dubai and Abu Dhabi have had tax exemptions for cryptocurrencies. They cover all crypto-related activities, including trading, staking, mining, and NFTs. You will pay no tax on any cryptocurrency-related gains, whether you are an active trader or just a casual user.
How Can I Accept Crypto Payments in UAE?
When starting to accept crypto payments for individual or business purposes, it’s important to use a reputable crypto payment processing service. NOWPayments offers a range of tools that help make crypto payments easy and convenient:
- Donation widgets. Permit you to paste your API key into the code snippet and insert the code into your website.
- Donation buttons. Codes that are simple to add to your email signature, blog, or website.
- Donation links. Anywhere online, including social media, links can be used to share these with people.
- Plugins. Payment gateways are ideal for accepting cryptocurrency payments in online stores because they integrate easily into popular content management systems (CMS) like WooCommerce and OpenCart.
- Cryptocurrency API. Provides instant payment notifications (IPN) and allows for the integration of cryptocurrency payment services into your website, platform, or mobile app.
- Invoices. The payment process can be streamlined with personalized invoices that your customers can pay in fewer steps.
- Point of sale (POS) terminal. Offer your customers a convenient way to use their cryptocurrencies in your physical, offline store. Benefit from additional tools like transaction management, quick payments, and simple invoicing.
Create a NOWPayments account to begin accepting crypto payments.
- Visit the official NOWPayments website to register. Enter your email address and select a password for your account.
- Confirm your email address, log in, and open the NOWPayments dashboard.
- The next step is to enter the address of your cryptocurrency wallet in the Payment settings from the Settings menu. The cryptocurrency payments you receive will be sent to this address.
- To access plugins and API updates, the API key can also be generated in this tab.
- You can receive your first payment by creating a Payment link in the Payment tools. Choose the price, the method of payment, and whether or not a fixed rate payment and a customer-paid fee are used.
- The generated permalink can now be sent to your customer for payment.
Conclusion
A number of factors exist in the UAE that support a favorable environment for blockchain and cryptocurrencies. Dubai and Abu Dhabi already centered on the tech community, are developing into safe havens for the blockchain and digital asset sectors. As Europe and the U.S. tread cautiously when it comes to crypto regulations, the UAE is moving rapidly to become a place with clear, safe regulations for the digital asset industry.