Dubai property developers are now accepting Bitcoin. Firas Al Msaddi, CEO of fam Properties, said buyers could use cryptocurrency the same way they'd use cash or a bank loan to purchase real estate. B
Dubai property developers are now accepting Bitcoin. Firas Al Msaddi, CEO of fam Properties, said buyers could use cryptocurrency the same way they'd use cash or a bank loan to purchase real estate. But regulators have blocked the easy path.
The UAE Central Bank prohibits virtual currency transactions and doesn't license any financial institution to handle crypto payments. So fam Properties partnered with Huobi, a Singapore-based crypto exchange, to work around the restriction. Here's how the system works: a buyer sells their Bitcoin to Huobi, which converts the proceeds to dirhams and transfers the funds to fam Properties.
The volatility issue remains. Experts advise buyers to watch Bitcoin's trading range before making a purchase decision. They recommend buying property when the price sits on the higher end of that range, then converting any remaining funds to USD once the deal closes. Buyers should also verify the developer's reputation, ensure all paperwork is complete, and examine the property's authenticity before committing.
Dubai's regulators face a new headache. The "Blockchain and Cryptocurrency Regulation 2020" states: "Until the regulatory framework is amended or new regulations are issued to deal with virtual currencies, the regulatory framework remains valid, and technically speaking the UAE Central Bank can take action against existing and proposed business dealing in virtual currencies."
Using an offshore intermediary like Huobi sidesteps this oversight. Any jurisdiction where fiat currency can move across borders would see similar Bitcoin real estate deals.
Blockchain technology could reshape real estate's traditional structure. Property transfers today require lawyers, brokers, notaries, banks, and title agencies. All these professionals charge substantial fees and create multiple friction points. A blockchain-based property record system could eliminate the need for many of these intermediaries. Most real estate markets don't yet use blockchain, but Dubai's arrangement shows how the model could spread to other countries where capital flows offshore.
