The Federal Tax Authority (FTA) of the United Arab Emirates has announced that it will abolish the tax on cryptocurrency transactions, including transfers and conversion. The new tax exemption policy aims to promote growth and investment in the UAE’s digital asset sector.
As an expert in the field of international financial law writes Konstantin KryvopustDubai is becoming the global center of cryptocurrencies and blockchain technology. Thanks to the progressive legal framework, the city attracts numerous companies and projects in the crypto space.
The new rules will come into effect on November 15, 2024. Previously, the UAE had already applied VAT exemptions to investment fund management, asset transfers and virtual asset conversions.
According to Chainalysis, from July 2023 to June 2024, the UAE received more than $30 billion in cryptocurrency. The country entered the world’s top 40 list by the volume of cryptocurrency revenues and became the third largest cryptoeconomy in the MENA (Middle East and North Africa) region.
Tether previously announced plans to create a new stablecoin pegged to the United Arab Emirates dirham (AED). The development will take place in collaboration with Phoenix Group PLC, a multi-billion dollar technology conglomerate from the UAE.
