Virtual assets and investment fund management are no longer subject to value-added tax, according to an updated version of the Executive Regulation of Federal Decree Law released on October 2 by the UAE Federal Tax Authority (FTA).
The adjustments made in response to a Cabinet decision are effective November 15 this year.
These revisions attempt to align with previous revisions to the Decree-Law and other applicable tax laws, clarify important clauses and processes, and provide more information.
According to the new law, which pertains to financial services, management of investment funds, ownership and transfer of virtual assets, including cryptocurrencies, and conversion of virtual assets, would not be subject to value-added tax.
The exceptions regarding virtual asset conversion, transfer, and ownership went into force as of January 1, 2018.
Tether Expands Global Footprint With UAE Dirham-Pegged Stablecoin
The new token, set to be launched under the UAE Central Bank’s Payment Token Services Regulation, will join Tether’s existing stablecoin family, including USDt, EURT, CNHT, MXNT, XAUT, and aUSDT.
The UAE determined that a variety of activities were free from VAT last week, including the exchange of digital assets, such as digital currencies, the storage and oversight of virtual assets, and the transformation of virtual assets.
The UAE’s moves are an effort to boost the development of such innovative regulatory systems.
Moving away from the United States, where clarity is still lacking, and towards India, where a 30 per cent tax has effectively driven offshore activity, other nations have adopted alternative approaches.
However, market participants can rest easy knowing that the United Arab Emirates is still unrivalled in digital assets.
Recent research from Henley&Partners places the UAE atop this year’s crypto adoption Index, placing it in the top 12 nations for both public adoption and technological innovation.
South Korean Crypto VC Hashed Expands to Abu Dhabi Via Hub71 Partnership
Hashed Ventures is expanding to Abu Dhabi through its partnership with Hub71, intending to opening a new office in the UAE capital
The research cites the UAE’s low-tax jurisdiction as an appealing environment for crypto enterprises, which is a key factor in the country’s crypto growth.
The UAE is second only to the United States in terms of popular adoption of cryptocurrency. Surprisingly, no other Arab nation made it into this year’s top 12.
New VARA Rules Are Making Dubai’s Crypto Hub Stricter
Dubai’s new VARA rules force companies marketing virtual assets in the UAE to include a disclaimer stating that virtual assets may lose value and are subject to extreme volatility
According to the Index, the UAE is a top destination for cryptocurrency investors, with many in the Emirate interested, and already invested in digital assets.
A robust startup environment and solid government assistance are in sync with this level of excitement.
The latest tax exemption will add to its allure for crypto investors looking for places to invest in digital assets.
Elsewhere
Babylon’s Staking Success Fuels Bitcoin DeFi Growth
Bitcoin has been primarily known as a store of value, but initiatives like Babylon are expanding its utility and attracting a new wave of developers and investors.
WisdomTree Launches “Earn-Until-You-Spend” Function For Tokenized Money Fund Debit Card Spending
WisdomTree users will be able to access the WisdomTree Government Money Market Digital Fund (WTGXX) to fund their WisdomTree Prime Visa Debit Card
VanEck Launches New Crypto Fund to Fuel Innovation
The launch of VanEck Ventures further solidifies the investment manager’s position as a leader in the digital asset space.
Hong Kong Plans to License More Crypto Exchanges By Year-End
Hong Kong’s SFC has said that eleven crypto companies awaiting VATP license decisions are already operating as “deemed to be licensed”
Taiwan’s Financial Regulator to Launch Digital Asset Custody Pilot in 2025
This initiative aims to provide a safe and regulated environment for banks to offer custody services for cryptocurrencies and other digital assets.
FBI Creates Its Own Crypto Token to Target Market Manipulators
FBI backed token NexFundAI was used to catch market makers that offered services to artificially pump up crypto prices
Events
GeckoCon (Bangkok, 11 November 2024)
GeckoCon returns, and this year we’re diving into the revolutionary world of Web3 Gaming! Discover how the fusion of blockchain and traditional gaming is creating a whole new entertainment layer.Don’t miss out—visit CoinGecko now to secure your spot in our first ever Hybrid Conference set to take place in Bangkok, Thailand. Or from the comforts of your home!
Get your tickets now with Blockhead’s 40% code: BHGC24
[Limited to 30 redemptions, expires 31 October 2024]
[Redacted] (Bangkok, 9-11 November 2024)
The [REDACTED] conference is bringing together the brightest minds in technology for a transformative three-day event from November 9-11, 2024, at the Avani Riverside hotel. This gathering will take place just ahead of Devcon and promises to be a pivotal moment for the convergence of artificial intelligence and Web3.
Interested readers can apply for free tickets here, and sign up for the hackathon here.
It’s All Happening on LinkedIn
Did you know you can now receive Blockhead’s juicy daily newsletters directly to your LinkedIn? Subscribe to our LinkedIn newsletters for the latest news and insights in the world of Web3!
There also might be the occasional discount code for the industry’s hottest events, exclusively for subscribers. So be sure to sign up!