With the rise in popularity of cryptocurrencies, the UAE has incorporated the use of crypto into a variety of different sectors from travel to sports betting to real estate.
In fact, the use of cryptocurrency in the UAE is very progressive when compared to other countries. Digital currencies and blockchain technology have been embraced by the UAE, who recognize the potential of cryptocurrencies for innovation and economic growth.
The UAE Central Bank has also issued guidelines for using virtual currencies. These guidelines have emphasized the need for anti-money laundering (AML) and know-your-customer (KYC) methods, which have since been incorporated into crypto regulations in the UAE.
In 2017, the UAE’s SCA (Securities and Commodities Authority) issued a statement that allowed virtual currencies such as crypto to fall under the SCA’s regulatory frameworks.
There are still some limitations and risks that are associated with the use of cryptocurrencies. Ensure that you follow the regulation framework set out by the UAE government when using cryptocurrencies.
What does the UAE’s adoption of crypto mean for people who want to use crypto? Businesses are allowed to accept crypto, and individuals are allowed to purchase goods and services with crypto, so long as complying with regulations.
Let’s take a look at a few of the best ways to spend crypto in the UAE.
4 Ways You Can Spend Crypto In The UAE
1. Online Sports Betting
Although there are strict laws on gambling in the UAE, you can still access legal online casinos to place bets on your favorite teams or sporting events. Many offshore online casinos accept players from countries all around the globe, the UAE being one of them.
Since the ban on gambling in the UAE is strict, many smart sports bettors from the UAE choose to use cryptocurrencies instead of their UAE bank account or credit cards when placing bets online. Cryptocurrencies are best suited to make payments when joining an online casino from the UAE due to their anonymous and secure nature.
2. Online Shopping
Several platforms accept cryptocurrencies as a payment method in the UAE, which supports a thriving retail industry and happy customers.
These are some of the online stores and platforms where you can use cryptocurrencies:
- BitOasis: This platform is popular for cryptocurrency exchanges, allowing users to sell and buy products using crypto. It accepts a variety of different cryptocurrencies. This includes Bitcoin, Ethereum, and Ripple.
- Bitrefill: This platform is a global one and allows customers to buy mobile top-ups and gift cards while using cryptocurrencies.
- CoinGate: This is a payment gateway that provides businesses with the software needed to accept cryptocurrencies. E-commerce platforms can use this user-friendly interface as it supports multiple cryptocurrency types, giving customers a wider range of cryptocurrency payment methods.
When shopping online using crypto, consumers have noted a plethora of benefits. Let’s explore some of the benefits of using crypto to purchase goods and services online.
- Security: When compared to traditional payment methods, crypto offers more security because of its decentralized and secure nature. Encryption further reduces the risk of identity theft and fraud, making it a top choice for online shoppers.
- Privacy: Because cryptocurrencies are not linked to your personal information, this provides a certain level of anonymity.
- Global Accessibility: These digital currencies are not bound by exchange rates or geographical borders; this means that crypto can be used from anywhere in the world. There is no need to do currency conversions, reducing transaction costs.
- Faster Transactions: These transactions are much faster than traditional payment types as there is no need for middlemen or long processing times.
- Lower Transaction Fees: Crypto transaction fees are much lower than traditional payment methods. This is advantageous, especially for international transactions.
- Innovation and Future Potential: As more businesses adopt crypto in the future online shoppers will have more choices as to where to spend their digital coins.
3. Travel and Accommodation
Users can now book flights and hotels while in the UAE using cryptocurrencies. This opportunity has led to many advantages for both travelers and businesses.
Using cryptocurrencies for traveling can enhance the level of security and privacy of users since there is no need to share personal information when making bookings, only what is needed. These transactions are also more secure which is a big bonus for many travelers.
Crypto transactions are also much faster and more efficient. This means that when booking your hotel or flight, you are directly paying the money to the business without waiting until an intermediary has processed the transaction. Since cryptocurrencies do not have any geographical barriers and are a global payment method, travelers will not be subjected to exchange rates or conversions before using their digital money, which is another big selling point for many savvy travelers.
Here are some examples of dining places in the UAE that accept cryptocurrency as a payment method:
- The Tap House: This is a popular restaurant and bar in Dubai that accepts Ethereum and Bitcoin for food and drink payments.
- The Coffee Club: This chain of cafes allows customers to use cryptocurrencies such as Ripple, Litecoin, and Bitcoin.
- The Green Planet: This entertainment venue has an indoor rainforest theme, and admission tickets can be paid for using cryptocurrencies.
4. Real Estate
In the UAE, you can also purchase or invest in real estate using cryptocurrency. Purchasing real estate using cryptocurrency has many benefits. Let’s discuss them below:
- Increased Accessibility: Anyone from anywhere in the world can purchase real estate in the UAE, as cryptocurrencies provide a borderless financial system that is decentralized. Hence, this allows international investors to invest in real estate with ease using crypto.
- Speed and Efficiency: The usual traditional processes of purchasing real estate can be long as they involve paperwork and intermediaries. Using smart contracts, which are powered by blockchain technology, can automate the transaction terms and reduce time spent on verification and paperwork.
- Security and Transparency: These transactions are secure and transparent as they are powered by blockchain technology. These are also tamper-proof, as each transaction is recorded on a distribution ledger, reducing the risk of fraud.
- Lower Transaction Costs: Various fees are tied to real estate transactions, such as legal fees, banking charges, and agent commissions. Using cryptocurrency can eliminate several of the fees involved.
- Potential for Capital Appreciation: Buyers and sellers can both financially benefit from purchasing and selling real estate and using cryptocurrencies.
- Diversification: Crypto in the real estate market allows real estate developers to diversify their portfolios and holdings beyond the typical fiat currency real estate transactions.
- Anonymity: Traditional transactions require the disclosure of personal information, whereas with cryptocurrencies, investors can remain fairly anonymous.
The UAE is leading by example with its unique and forward-thinking approach to adopting crypto in everyday ways. There are several ways that you can spend crypto in the UAE as mentioned above. This can be from real estate, luxury goods, betting online, and retail.
Businesses are gradually adopting crypto into their payment methods, which consumers are ready for. The use of cryptocurrencies gives users convenience, security, and ease of use. However, staying informed about the regulatory and legal frameworks around crypto transactions in the UAE is important.
What types of goods and services can I buy with crypto in the UAE?
Crypto can be used to pay for clothing, electronics, dine out, bet online, and when making travel bookings, among many more.
Are there any limitations or restrictions when using crypto for payments in the UAE?
There are some regulations surrounding crypto that can place restrictions and limitations on the type of cryptocurrencies that businesses accept. However, the country is much more accepting of crypto than many others.
How can I ensure the security of my crypto transactions in the UAE?
You should always use reputable platforms or apps that have proper security measures in place. You can look for platforms that have secure wallets that enable two-factor authentication.