Authorities want to monitor payments made in Bitcoin and Ethereum as the country develops as a cryptocurrency hub.
The United Arab Emirates (UAE) government said on Monday that real estate agents must alert money laundering authorities about any sale of property paid with cryptocurrency. At the same time, companies such as Bybit, Kraken, Binance, and Crypto.com want to open offices in the emerging crypto centers of Dubai and Abu Dhabi.
Now, the UAE government is trying to impose strict regulations to ensure that any real estate transaction is reported to money laundering regulators, even if they use virtual assets or funds from virtual assets for a fraction of the home’s value.
The United Arab Emirates Wants To Monitor All Crypto Transactions
Abdulla bin Touq Al Marri, UAE Minister of Economy, said in a statement that the new rules “will leave little or no room for manipulation or illegal practices that could adversely affect the working environment economy and investment” in the real estate and legal sector.
It will also require brokers, agents, and law firms to report to the FIU responsible for monitoring black money. This applies if the buyer tries to cash out over AED55,000 (approximately $15,000).
The global anti-money laundering standard-setting Financial Action Task Force is seeking to restrict the use of cryptocurrencies to launder the proceeds of crime or finance terrorism. Currently, this includes the “travel rule,” a controversial way to identify and track payers.