United Arab Emirates: Could Salaries Be Paid in Crypto Soon? Experts Explain – News

Digital currencies are already being accepted by some countries.



Agency file

Agency file

Published: Sun 27 Mar 2022, 11:58

As virtual assets gain more and more value in the UAE and around the world, industry executives believe that more and more companies will pay salaries in cryptocurrencies and that the industry will also be less volatile due to regulations and framework improved laws.

Some countries are already accepting digital currencies, while some tech companies have been paying their employees salaries in crypto.

With Dubai also introducing a legal framework and establishing an authority to regulate virtual assets, industry executives believe it is possible for businesses here to pay salaries in digital currencies as well, and for residents to pay utility bills and buy goods through of this new form of currency.

Abu Dhabi Global Markets (ADGM) was the first jurisdiction in the world to introduce a comprehensive and tailored regulatory framework for the regulation of spot virtual asset activities, including those conducted by multilateral trading facilities, brokers, custodians, asset managers and other intermediaries. Recently, Dubai also announced the law for virtual assets and the establishment of the Dubai Virtual Assets Regulatory Authority (Vara), which is licensed to trade FTX and Binance as of late.

Reflecting the growing adoption of digital currencies in the United Arab Emirates, Emirates Draw and YottaChain International Holding Limited (DIFC), which specializes in decentralizing data storage solutions, have signed an agreement allowing cryptocurrency holders to participate. at Emirates Draw. The first phase will allow payments in USDT, a well-known and stable token, through a decentralized application (dApp).

Jeetu Kataria, CEO of Digital Financial Exchange (DIFX), said that an interesting factor is the rise of metaverse projects that work and deploy their own cryptocurrencies.

“Recent events have also shown the world how crypto can be used in a charitable sense, which I think not many had imagined it could facilitate. In general, the growth of cryptocurrencies is still in its early stages and the only thing I do believe is that it will become a mainstream form of investment for the general public,” he said.

Globally, the Ukrainian government has raised $120 million through digital assets to fund its military and legalize the sector in the country.

growing adoption

Cryptocurrency adoption has evolved rapidly, with investors in the cryptocurrency industry growing by more than 500% between 2018 and 2021.

Emmanuel Givanakis, Executive Director of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), noted that the use case for virtual assets, as well as the underlying blockchain or distributed ledger technology, will continue to expand in the future.

“Considering the different types of use cases, across payments, storage of value, governance, etc., it looks like it’s going to be an interesting five years. Just as importantly, there is potential for the use case for blockchain in different types of financial services activities to increase as well, again in payments, but also in custody, trading, settlement, etc.

Mustafa Kheriba, CEO of Yoshi Markets, pointed out that knowledge, regulations and the ability to pay with cryptocurrencies are some of the factors that will accelerate the adoption of digital currencies.

UAE: Partial Salaries in Cryptocurrencies

Considering the huge adoption of cryptocurrencies, Kheriba believes that the current use case for virtual assets will evolve and expand.

He said that salaries are already paid in cryptocurrencies in many countries, such as New Zealand, Japan, the United Kingdom, and in many European countries such as Denmark, but it is still rare to pay salaries in cryptocurrencies, as many people would not feel comfortable. due to lack of awareness, limited avenues for use, and the volatility of some currencies.

“We are seeing more and more businesses offering to pay in crypto by the day and mayors in upcoming crypto hubs like Miami and New York looking for ways to pay salaries in crypto and convert their entire personal salary to BTC. There may be a possibility that some organizations pay part of the salaries in the UAE in stablecoins, considering that the UAE aims to increase the number of companies operating in the virtual asset industry,” he added.

DIFX’s Jeetu Kataria said that some companies within the crypto services space already pay salaries in Bitcoin, USDT and Ethereum. But he suggested that a good way to integrate cryptocurrency into organizations would be to give employees the option to receive a certain percentage of their salaries in cryptocurrency.

Pay utility bills in crypto in the United Arab Emirates?

Lately, one of the most accepted aspects of cryptocurrencies has been the payment of utility bills.

Mustafa Kheriba said that the digital currency is already being used to pay utility bills in Germany, Romania and New Zealand.

“You can also get a crypto debit card to pay your bills where your coins will be converted to fiat money for a small transaction fee to pay bills. The high adoption phase and the willingness of the world government to regulate cryptocurrencies and even convert their currency into digital currencies are indicators that virtual assets as a means of payment could become widespread in many countries”, added Kheriba.

Recently, the Dhanu digital currency was launched by the Dhanu X digital exchange in the United Arab Emirates, allowing its buyers to pay utility and credit bills in India due to the growing popularity of virtual currencies and assets.

Sachin Kumar, co-founder of digital exchange Dhanu X, said that they each obtained a license from the mainland and DMCC for products and portal. The exchange launched with five digital currencies and will increase to 15 within a month. He said the use of digital currencies is gaining traction in both the developing and developed worlds, with Mauritius and the United Arab Emirates emerging as some of the friendliest countries for virtual assets.

DIFX’s Jeetu Kataria acknowledged that it is an interesting concept as some utility providers in Germany, New Zealand and Romania accept Bitcoin as a form of payment.

How to mitigate volatility risks:

Cryptocurrencies are one of the most volatile assets, therefore retail investors need to be cautious and perform due diligence before injecting their hard-earned money into this new mode of investment.

Jeetu Kataria, CEO of DIFX, advised investors to perform proper due diligence behind each and every project. “Cryptocurrencies are risky. People often tend to fall for scams and buy things that are “trending” and lose their hard-earned money. To mitigate risk, make sure you have a diverse portfolio of projects you really believe in.”

Emmanuel Givanakis said that the FSRA seeks to mitigate volatility and risks through different mechanisms.

“Exchanges are required to have the tools and controls within their markets to manage such risks. Second, the FSRA also monitors these markets in real time. Third, only accepted virtual assets are allowed to be used within the ADGM, requiring seven risk factors, controls and tools to be tested and approved to ensure the virtual assets they use can be monitored and are properly connected to the markets. Worldwide. Givanakis said, adding that ADGM markets are a mix of retail and institutional participants, allowing for further mitigation and management of such volatility.

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Yoshi Markets’ Mustafa Kheriba said that regulatory guidelines and broader ownership of cryptocurrencies will decrease volatility in the market.

Richard Teng, Mena Regional Director, Binance, encouraged investors and users to do their own research before investing in cryptocurrencies, keeping in mind their tolerance for risk and investing within their financial means. “With increased institutional and crypto adoption gaining investment traction among financial institutions, businesses and family offices, we should see more research and more informed decisions which bodes well for this space,” he said.

waheedabbas@khaleejtimes.com

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