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- Samana Developers, a group of realtors, recently announced that they would be accepting Dogecoin for realty transactions.
- The Crypto market is unregulated; the Director of Danube Properties thinks crypto is unsuitable.
- DMCC will set up a regulatory framework for crypto-related activities.
Dubai businesses are very open-minded towards cryptocurrency payments, especially the realtor sector. As per Khaleej Times, Samana Developers, a group of realtors, recently announced that they would be accepting cryptocurrencies for realty transactions. For their upcoming project in Jumeirah Village Circle, they would be accepting Dogecoin.
Atif Rahman Explains Why Crypto is Not a Good Choice for Real Estate Payments
However, the usage of cryptocurrencies is still a doubtful step for Dubai’s property sector. Atif Rahman, the director, and partner of Danube Properties, expresses his skeptical views on crypto. He says that he thinks crypto is best classified as a commodity in light of the immense cryptocurrency growth rather than a currency. He added that cryptocurrency is unregulated. Hence the risk of devaluation from price crashes is very high. He is highly doubtful about its implementation in the property sector. This is because land requires the fund that must come specifically from an escrow account. Now, escrow accounts do not support cryptocurrencies, which makes them useless in realty payments.
Dubai has Made Immense Progress in Cryptocurrency-Related Issues
Although the implementation of crypto payments in the realty industry is still dicey, Dubai has made some immense progress involving crypto. The Securities and Commodities Authority recently signed a memorandum that allowed businesses dealing with crypto to gain a license under the DMCC Crypto Centre. The regulatory authority will be set up for companies offering, issuing, listing, and trading crypto assets. This will be carried out by the Dubai Multi Commodities Centre (DMCC).
Crypto Based Payments may Open up a New Segment for Buyers
Farooq Syed, CEO of Springfield Properties, thinks the country’s real estate sector must give a shot to cryptocurrency payments. Crypto has currently achieved tremendous mainstream adoption, and given the current situations, it might open up a brand new avenue for users. And as for the risk, it entirely depends on the seller of the property. If he/she is okay with the risk of cryptocurrency payment, it should be allowed.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
