Bitcoin (BTC) is the leading cryptocurrency on the market, with a market cap of $1.1 trillion. It has been available in the UAE since 2014, and its popularity increases daily. The Securities and Commodities Authority (SCA) monitors Bitcoin’s activity and regulation in the UAE. Buying, selling and holding Bitcoin in the UAE is legal. You have to take four simple steps to start trading Bitcoin: open a trading account, deposit money, buy BTC and deposit BTC on e-wallet.
This article discusses how to legally buy Bitcoin in the UAE and Dubai through an exchange or broker.
See more: What crypto cant i buy in ua
Best UAE Crypto Exchange to Buy Bitcoin
- eToro is the best overall broker to buy Bitcoin and other crypto assets
- AVAtrade offer the most versatile trading platforms
- IQ Option great all round offering and most crypto assets
- Pepperstone has a great platform and excellent support
Bitcoin UAE Exchanges in Overview
01. eToro: Best UAE Crypto Exchange
02. AVA Trade: Great Overall Offering
03. IQ Option: Diverse Assets and Great Support
04. Pepperstone: Great Support and Platforms
How To Buy Bitcoin In UAE And Dubai
Buying Bitcoin in UAE is legal, safe and simple, but you need to choose the right broker or cryptocurrency exchange.
1. Open a Trading Account with a Broker or Cryptocurrency Exchange
Open a trading account with one of the brokers offering Bitcoin trading or on a Crypto Exchange depending if they want to buy physical BTC or CFDs. The most common and secure way to buy Bitcoin is through eToro which allows you to buy physical Bitcoin, CFDs and also offers safe storage in nftgamef.comted: Best Cryptocurrency Exchanges for Bitcoin Trading
2. Upload Your ID
Upload a copy of your government issued ID and proof of address in order to comply with KYC (know your customer) requirements.
3. Deposit Money to your trading account or crypto wallet
To deposit money to your account you’ll have to select a payment method. Exchanges have you choose between a bank account and a debit/credit card. We recommend you avoid using a credit card, as cryptocurrencies are volatile. BTC is legal in the UAE, but some banks don’t allow deposits to crypto-related sites or exchanges. It is best to verify at your local bank whether they have cryptocurrency restrictions.
4. Buy Bitcoin
After choosing a payment option, you can place an order for BTC. Exchanges offer different order types and investing opportunities: market and limit orders, stop-loss orders. Traders can buy physical BTC through an exchange and get ownership of the underlying asset (BTC).
They can also buy Bitcoin as CFD. When you buy it as CFDs you do not get ownership over the underlying asset as with physical BTC. In this case you sign a contract and bet against the broker that the price of BTC will go up or down. You take profit when you are nftgamef.comted: How To Buy Cryptocurrency in UAE – A Step by Step Guide
5. Store Bitcoin in your e-wallet
The safest way to store digital assets is in a e-wallet. It ensures that only you have access and control over your funds with a private key. A personal digital wallet is an excellent way to avoid the risk of losing funds because of a hacker attack. Most exchanges offer e-wallets for their customers. Related: Best Bitcoin wallets
Buy Bitcoin With Cash or Cash Deposit
Buying Bitcoin for cash get you the cryptocurrency quick, easy and fully discrete.
You can buy Bitcoin in UAE for cash by using a Bitcoin ATM radar or LocalBitcoins app. Both methods offer fast, fully discrete and simple ways to purchase Bitcoin. Bitcoin cash purchases come at a higher price charging an extra purchase and conversion fee. Most Bitcoin ATMs charge a fee of 6-12%.
How To Buy Bitcoin and Cryptocurrency With eToro?
eToro is the most popular platform for cryptocurrency trading because of zero hidden fees, copy trading tools, demo account and beginner friendly platform. There are four simple steps to buy BTC with eToro.
STEP 1: Go to the eToro official website
STEP 2: Click on the green “Get Started” Button
STEP 3: Create and Verify Your Account
To buy BTC through eToro you need to sign up, verify your account and make a first time deposit. This will enable you to buy, hold and sell BTC and other cryptocurrencies.
STEP 4: Buy Bitcoin (BTC)
You can buy, hold and sell fractions of Bitcoin. To own BTC you don’t need to buy a full Bitcoin. The same goes for all cryptocurrencies.
Are Bitcoin and Cryptocurrencies Legal In UAE?
Based one the publication D.7.3 of the Regulatory Framework for Stored Values and an Electronic Payment System, by the Central Bank of UAE from January 2017, all transactions in “virtual currencies” (encompassing cryptocurrencies in Arabic) are prohibited” and therefore Bitcoin is Illegal in UAE.
Although the UAE regulation recognises Bitcoin as Illegal, the government allows citizens to buy and trade Bitcoin staying in UAE. This means that citizens can buy, sell, and hold BTC, but they are not allowed to buy anything with this currency. People are free to own BTC and any other cryptocurrency, deposit and trade with it on an Exchange and withdraw it to AED.
Cryptocurrencies have no underlying commodity or tangible asset. These coins fall outside financial regulation. If you lose money, the UAE does not offer any financial insurance. eToro, AVAtrade, IQ Option and Pepperstone provide crypto-insurance against theft, hacker attacks, and natural disasters, but not for volatile market movement.
The Regulation of Cryptocurrencies in UAE
Cryptocurrencies in UAE fall under the authority of the Financial Services Regulatory Authority, the Securities and Commodities Authority, and the Dubai Financial Services Agency. The SCA/FRSA oversees the trading of digital coins. The Central Bank in UAE considers crypto trading as highly risky, which is why all parties involved in the transaction must follow strict compliance to the Anti-Money Laundering and Counter-Terrorism Financing Laws of the UAE.
Currently there is no unified regulation on cryptocurrencies in UAE and trading with virtual assets like Bitcoin still remains Illegal. Following the latest statement of The Central Bank of the UAE saying that crypto or virtual assets are not presently accepted or acknowledged as legal tender in the UAE, the only valid currency in this country recognised by the central bank remains the UAE dirham.
While the legality of virtual currencies is still vague, cryptocurrency exchanges like BitOasis have been licensed to operate in the global crypto market. As of now UAE citizens are allowed to buy, sell and hold cryptocurrencies like Bitcoin as investments, but they are not able to buy any physical goods with them.
The Future Of Cryptocurrencies in UAE
Regulators Are Setting Ground Rules for UAE To Become The Biggest Hub For Cryptocurrencies and Blockchain Technology in the world.
The UAE aims to become a global hub for cryptocurrency and blockchain technology as market capitalization hits $1.4 trillion, up 86 percent year to date. UAE regulators are adopting new legal frameworks and regulations that makes the country open to new crypto and blockchain startups.
In 2021, the Securities and Commodities Authority (SCA) signed agreements with leading flagship zones in the UAE, including DMCC, DAFZA, and DWTCA. These agreements make it easier for crypto-related businesses to receive a trading license and operate in the UAE. It will also support Dubai’s reputation as a well-positioned center and increase trading security. The goal is to create a supportive regulatory framework for virtual assets and encourage regional transactions to fully harness the regions trading potential. Secure regulations and investor awareness initiatives will encourage mass adoption of crypto assets in the UAE.
To show support and openness for blockchain and virtual assets in the region the Central Bank of UAE announced to publish its own digital currency. The CBUAE has a market-leading strategy as part of its 2023 to 2026 goals to position itself among the world’s top 10 central banks. The public statement released by the bank reveals there are seven key objectives for the following years. These include the issuance of the digital currency Govcoins and digital driving transformation in the UAE’s financial services sectors. The Central Bank of the UAE commits to using the latest artificial intelligence and big data solutions to support cryptocurrency trading in the area.
Buy Crypto In UAE
You can buy crypto UAE the same way you buy Bitcoin. You need to open a trading account with a broker or crypto exchange, deposit money using a debit or credit card, choose the right cryptocurrency and store it on a e-wallet.
The best broker to buy cryptocurrency in UAE is eToro and the best exchange is Coinbase.
How to Buy Cryptocurrency in UAE?
To buy cryptocurrency in UAE you need to open an account with a regulated broker or exchange, deposit funds using credit or debit card and complete the cryptocurrency purchase.
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1. Sign Up at a Cryptocurrency Exchange or Broker
The most common way to buy cryptocurrency in UAE is to open a trading account with one of the crypto Exchanges (BitOasis, Kraken, Coinbase) or a brokerage account at one of the brokers offering cryptocurrency trading (eToro).
2. Deposit Money
After the trading account verification is finished you are allowed to deposit money using a direct bank transfer or credit card. Money deposits take up to 3 days to appear on your account.
3. Buy Cryptocurrency
After your money is visible on your trading account you can buy cryptocurrencies the exchange or broker is offering using their trading platform. You are allowed to buy fractions of each cryptocurrency.
4. Store Cryptocurrency
The safest way to hold cryptocurrency is by storing it on a e-wallet with a private key. This way you keep your purchase safe also if the broker or exchanges is hacked or stops working.
Users buy cryptocurrency in UAE the same way they buy BTC. The most common way to buy cryptocurrency in UAE is through an regulated online broker like eToro. eToro is a Broker and an Exchange at the same time and offers traders unlimited options to buy, sell and hold cryptocurrencies in UAE.
We recommend new users to check with the Exchange or Broker if they trade with the cryptocurrency they are interested in before opening an account.
eToro is the best platform to buy Bitcoin and other cryptocurrency in UAE and Dubai. They have excellent reputation and provide world-class BTC trading services for UAE residents. eToro has zero hidden fees, zero commission, great copy trading tools and a trading platform for traders of all levels of experience. BitOasis is a leading digital currency exchange that supports Bitcoin trading in UAE and Dubai. If you want to buy Bitcoin as CFD we recommend to use XTB broker.
Crypto assets come with many risks and impressive potential of rewards. Cryptocurrency represents a revolution in the digital transaction sector, and the UAE aims to be a leader in the industry. The market share of cryptocurrency in the Middle East is continuously growing thanks to the new laws and regulations supported by the Central Bank of the UAE. The cryptocurrency regulations are still new, and many changes are to be expected in the future.
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