Why UAE’s New Tax Exemption Could Ignite a Crypto Boom?
Starting from November 15, 2024, the UAE will exempt cryptocurrency transactions and conversions from Value Added Tax (VAT), applicable to both individuals and businesses.
While other nations remain cautious in establishing clear cryptocurrency regulations, the UAE has adopted an open and proactive approach.
How Have Cryptocurrency Regulations in the UAE Changed?
Prior to the tax exemption policy, the UAE had imposed a 5% VAT on cryptocurrency transactions, similar to other commercial transactions. However, taxing cryptocurrencies posed challenges due to their decentralized and anonymous nature.
Previous tax regulations created barriers for businesses and individuals entering the crypto market. The new tax exemption policy aims to
