UAE is one of the first countries in the Gulf region which has regulated its own cryptocurrency called eDirham. Bitcoin is a digital currency commonly accepted by businesses and individuals to exchange goods and services. If you’re interested in bitcoin trading in UAE, you’ve come to the right spot. In this post, I’ll address the borders aspect of bitcoin trading in this nation.
Is bitcoin trading legal in UAE?
The UAE’s central bank has not approved bitcoin and other online cryptos, such as Ethereum (ETH), Litecoin (LTC), Binance Coin (BNB), and Stellar (XLM), as trading currencies; however, people buy and sell them online.
UAE Residents and Emirates can easily purchase bitcoin from local and foreign sellers and sell their digital currency to a local or international buyer online. Although the country’s financial regulation does not allow people to transact in cryptocurrencies, individuals and businesses have embraced the technology.
There may be several reasons for trading bitcoin in the United Arab Emirates, including making payments for goods and services or Purchasing currencies now and selling them at a higher price in the future.
It’s simple to buy and sell bitcoin in the United Arab Emirates, but the most critical points to note are the following;
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Choosing the right platform.
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Maintain a reliable wallet.
Choosing the right platform: Numerous domestic and foreign online trading sites are open to UAE residents, but we cannot confirm their legitimacy.
While trading bitcoin is illegal in the United Arab Emirates, you would face the danger of exposing the financial crime if you lodge the report to the police for someone that scam you.
So, it is essential for you to signup on the reliable crypto trading platforms that accept investors from the UAE.
Another problem with bitcoin trading platforms is high traction fees. However, these tools are completely free to use. They take a certain percentage as commission while transactions are made.
You should choose a platform that offers you reasonable transaction fees; therefore, I suggest you research the website before using it. Try to get information about their past business activities, transaction fees, and account accepts from UAE.
You can find various platforms that meet your needs; however, here is a list of ideal platforms for UAE residents.
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Localbitcoins.com
Local bitcoin is a peer-to-peer bitcoin exchange platform where sellers generate ads and post them on the local bitcoin website. Any buyer who is interested in purchasing can contact the seller.
Additionally, this website offers a web-based wallet from which you can send and receive bitcoins. When all parties are local, fraudulent transactions are less likely. Many people use the local bitcoin in the United Arab Emirates.
2. BitOasis;
It is one of the most trusted cryptocurrency transaction site in the region, including the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, and Oman, as well as Egypt, Jordan, and Morocco. BitOasis is a cryptocurrency platform based in the United Arab Emirates.
By registering as a user with BitOasis, you can obtain wallets for storing, sending, and receiving cryptocurrency.
You can fund your BitOasis account with AED using a personal debit/credit card or a wire transfer.
3. Palmex;
This is another company incorporating Arabian blockchain technology, which is based in the United Arab Emirates.
Although Palmex is not a local organization, similar to BitOasis, it provides advanced trading tools, multiple cryptocurrencies, stringent security measures, and low trading fees.
As a result, it has become a more promising platform for cryptocurrency traders in the gulf region.
Palmex does not currently support the deposit of fiat currency in the UAE or other gulf countries.
You should fund your Palmex wallet with cryptocurrency, so you should receive funds from other cryptocurrencies wallets.
When we discuss security, your funds will be safeguarded and controlled by you. Users can allow two-factor authentication (2FA) to protect against unauthorized access.
4. Binance;
It is one of the world’s largest cryptocurrency exchanges, supporting the MENA (Middle East North Africa) region.
On the one side, the company provides a trading network, and on the other, it provides a secure wallet from which users can send, receive, and store digital currencies.
Users from the United Arab Emirates including the gulf countries can deposit funds using credit and debit cards. If you want to purchase some cryptocurrency with the intention of selling it later when the price has increased, this network is safe.
5. Kraken;
It is another international cryptocurrency exchange that has supported the gulf region since its inception in 2011. Kraken was founded by Jesse Powell.
You can buy and sell crypto assets on this platform without fear, as they provide comprehensive protection for your wallet it has secured from unauthorized access.
Maintain a reliable wallet;
After selecting a trading site, the next critical step is to use a secure wallet to store, receive, and send cryptocurrency. Nowadays, online wallets are becoming increasingly common, and you may wish to use one.
When you use the wrong wallet can lose your money within a second, so, the following things should consider before selecting the wallet for your cryptocurrency;
- Is the wallet service offered by the region’s renowned cryptocurrency exchanges?
- There are no problems with making deposits using credit/debit cards or bank transfers.
- Bank withdrawal services into the bank accounts of gulf countries.
- Minimum charge for exchange, transaction, wallet services.
- Safety measure against unauthorized access.
Conclusion:
Not any GCC countries have authorized the bitcoin or any other cryptocurrencies to exchange goods and services and trade them for any purpose, however, they have been developing their own cryptocurrency.
Although it is considered illegal to invest in cryptocurrency many UAE residents have been investing in it.
You should select a reputable wallet provider and trading platform when trading Bitcoin in UAE. The sites mentioned above are legitimate trading platforms as of today, but cannot guarantee their future viability.
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