Latest UAE’s published amendments by the Federal Tax Authority (FTA) for VAT rule dedicated to crypto is going to boost crypto business opportunities.
On 2 Oct 2024, The UAE’s Federal Tax Authority (FTA) updated its Value Added Tax (VAT) rules.PwC explained that this amendment is dedicated for certain services, like managing investment funds and handling virtual assets (like cryptocurrencies). So now, businesses will get exempt from VAT for cryptocurrencies transactions.
In simple terms, businesses providing these services won’t have to pay this tax, which could lower costs for them and encourage more investment in these areas.
It is worth it to note that regulation around cryptocurrencies has been evolving day by day in the jurisdiction of UAE.
Just a month ago, Dubai’s Virtual Asset Regulatory Authority (VARA) and the Securities And Commodities Authority (SCA), the UAE’s federal financial agency, agreed on mutually supervising virtual asset service providers (VASPs). Means they decided to work with each other to supervise the businesses dealing with cryptocurrencies.
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Because of the agreement, VASPs businesses also have the option to provide crypto service by being registered by default with the SCA.
Recently the VARA body also tightened its rules on crypto marketing. On 26 Sep, the regulator said that firms promoting digital asset investments should add a prominent disclaimer to their material.
Bitcoin price action
The current trade price of Bitcoin (BTC) is $63,828 & this price is 19% high over the last 30 days period. It is expected that the trade price of Bitcoin is heading toward easy $70k in the upcoming weeks.
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