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.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Bitcoin and crypto market maintain decline despite Fed Chair Powell's hints at further rate cuts
The general crypto market continued on a downtrend on Monday despite Fed Chair Jerome Powell hinting at the possibility of further interest rate cuts later in the year.
Ethereum risks decline to $2,395 amid impressive ETF inflows
Ethereum traded around $2,600 on Monday, down 2% on the day. In the past 24 hours, ETH has seen $29.94 million in liquidations, with long and short liquidations accounting for $24.9 million and $5.04 million, respectively.
Dogwifhat and BONK defy crypto market decline
WIF and BONK are up about 6% in the past 24 hours. The meme coin market cap is down nearly 6% following declines sustained in DOGE, SHIB and PEPE. WIF could rally toward $2.939 if it smashes resistance near $2.643.
XRP fails to close above $0.65 support, while Ripple CEO offers optimistic outlook on crypto market cap
XRP fails to close above $0.6500, a key psychological barrier for the altcoin’s holders. The top Ripple executive made headlines for comments on the market capitalization of crypto expanding.
Bitcoin Weekly Forecast: $70,000 mark on sight as bulls remain strong
Bitcoin has risen around 3% so far this week, breaking above its range upper limit of $64,700. This gain was supported by increased institutional demand for ETFs, which recorded inflows of more than $612 million this week.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.