There are many concerns around cryptocurrencies and bitcoins in general when it comes to buying them in Dubai, UAE. Who can actually buy bitcoins? What are the legalities surrounding bitcoins and who can buy them? These are some general concerns by anyone that is willing to buy bitcoins in Dubai.
However, we are here to clear all these doubts because some of these are just misconceptions.
So, let’s get started.
Are Bitcoins Legal in Dubai?
Yes, bitcoins buying and selling is completely legal in Dubai, UAE. There are no laws that say otherwise. If you plan to buy bitcoins for investment or any other purpose, you can do so while living in Dubai without any issues.
The only problem will occur when you use it as a legal tender.
What does a legal tender mean?
A currency of exchange. That is dirhams in Dubai, UAE.
So, you cannot use bitcoins as a replacement for dirhams. That is illegal and completely forbidden and you can get arrested for that.
However, if you don’t plan to do that, then you can buy and sell cryptocurrencies including bitcoins as and when you want.
Can anyone buy Bitcoins in Dubai?
Anyone living in Dubai can buy or sell bitcoins without requiring any permissions from the Dubai government. They can do so either through online platforms available to them or through any other means. It is as simple as that.
Some popular and trustworthy platforms available online for purchasing or trading bitcoins while living in Dubai include Binance, OKX, Coindesk, Kucoin, and Local Bitcoin.
In fact, Dubai also has its very own startups dealing with cryptocurrencies like Pallapay, CryptoDesk, Pyypl, and various others. These also allow users to buy and sell bitcoins.
Can you use Bitcoin as a legal tender or currency in Dubai?
No, using bitcoin as a legal tender or a currency in Dubai is illegal. This is not allowed since Dubai uses only Dirhams or AED as a currency or bill of exchange. Any other legal tender is not sanctioned by the Dubai government so it is now allowed.
Can you sell Bitcoins in Dubai?
Yes, selling bitcoins just like buying bitcoins is completely legal in Dubai. In fact, it is encouraged by many financial experts to sell the bitcoins when they are in profit because the currency is highly volatile and can fall at any time.
So if you are holding bitcoins in Dubai and would like to sell them at a later period or when they are profitable, you can do that easily without any issue.
What are the restrictions on Buying Bitcoins in Dubai?
There are no apparent restrictions available when buying Bitcoins in Dubai. The only thing that needs to be considered is that the party or the service that you are buying bitcoins from is legitimate and licensed by the Dubai government. If the company is not licensed in Dubai, then they cannot sell bitcoins to you.
For example, many exchanges like Binance, Okx, and others are licensed and therefore you can easily buy bitcoins from them easily.
However, it is not recommended to buy bitcoins from any third party service or individual that is holding them in an external wallet. Since that person may be trying to scam you.
There have been many such cases where individuals tried to sell other individuals bitcoins and defrauded them. So you need to be aware of such cases.
Is BTC banned in Dubai?
No, BTC is not banned in Dubai. It is considered an ‘asset’ and not a legal tender. So if you plan to buy or sell BTC in Dubai, you can do that. However, using it as a legal tender or currency of exchange in Dubai is not allowed. So you need to be careful of that.
Is Bitcoin halal in the UAE?
There are different opinions on buying or trading in bitcoins. The question that it is halal or not is something that individuals have to decide for themselves. According to islam, there is no strict ruling on not to buy bitcoins. However, in Islam, btc is not considered as a legal tender since it is an imaginary number and holds no real tangible value.
So, based on this information, you can decide if bitcoin is halal or not.
Should Muslims invest in Bitcoins?
Many islamic scholars have mixed opinions about investing in bitcoins. They are of the view that bitcoins hold no tangible proof and are just imaginary numbers. So they are not a solid investment for muslims. They encourage muslims to invest in real currencies like gold, silver, or real estate since that holds real value and can be liquidated in case of need.