fxs_header_sponsor_anchor

UAE to clamp down on crypto real estate money laundering

Real estate agents will have to alert money laundering authorities of any property sales paid for in crypto, the government of the United Arab Emirates (UAE) said in a statement on Monday.

With companies such as Bybit, Kraken, Binance and Crypto.com seeking to set up in the emerging crypto hubs of Dubai and Abu Dhabi, some real estate developers in the country had announced they would start accepting payments in bitcoin (BTC) and ether (ETH).

Now the government is looking to clamp down, to ensure that any real estate transactions must be reported to money-laundering watchdogs if they use virtual assets, or funds derived from virtual assets, for even a fraction of the home's value.

The new rules will leave "little or no room for manipulation or illegal practices that could negatively impact the work environment and the economy and investment" in the real estate and legal sectors, UAE Minister for Economics Abdulla bin Touq Al Marri said in a statement.

They would also require brokers, agents and law firms to file reports to the Financial Intelligence Unit, which is responsible for tracking dirty money, and would also apply when the buyer attempts to pay in cash worth over AED 55,000 (around $15,000). The government did not specify any threshold for virtual assets, implying even the smallest bitcoin transactions will be caught.

Global anti-money laundering standard-setter the Financial Action Task Force is attempting to clamp down on using crypto to launder the proceeds of crime or fund terrorism, including via the "travel rule," a controversial way of identifying and tracking payers.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.