UAE: How BRICS Member Transforms Financial Landscape with Direct Bitcoin and Ethereum Transactions

UAE changes the rules of the game: direct transactions Bitcoin and Ethereum from bank accounts is already a reality. How does this affect the global financial landscape?

What do we know about the UAE? The state structure of the United Arab Emirates is a unique combination of republican and monarchical systems. The UAE is a federal monarchical state consisting of seven emirates — absolute monarchies. The state is headed by the Emir of Abu Dhabi, the government — by the Emir of Dubai. The main resources of the UAE:

1. Aquatic. This is the main value in the desert. Today, desalination plants are being built all over the country, 35 of which are already in operation. There are very few natural fresh water bodies, and the small rivers that exist dry up completely during the hottest half of the year. Groundwater is unsuitable for drinking or irrigation.
2. Soil. Fertile lands in the UAE are scarce and highly valued. The vast majority of the territory is desert.
3. Oil. According to expert estimates, the reserves of oil fields in the UAE amounted to about 13 billion tons.
4. Gas. As of early 2020, the UAE's proven gas reserves amounted to 5.9 trillion cubic meters (7th place in the world).
5. Others. The UAE produces many minerals: coal, uranium, iron, chromium, copper, nickel, platinum, cuprous oxide, magnesite, asbestos, and bauxite.

In 2024, the UAE joined BRICS. Cryptocurrency transactions are officially permitted in the UAE. There are officially licensed exchanges operating in the country, and here are the best of them:

• Bybit – Overall the best cryptocurrency exchange in the UAE
• Binance – the most complete cryptocurrency exchange in the UAE
• OKX – crypto exchange with high liquidity
• Kraken – the oldest crypto exchange
• Coinbase – very convenient for beginners.

But these narrowly focused cryptocurrency exchanges are complicated for many. For some, they are like another planet. But local exchange M2 has made a breakthrough in this area, announcing that residents of the United Arab Emirates can now buy and sell Bitcoin and Ethereum directly using their bank accounts. In a statement on the matter, the crypto asset custody company said the new integration allows UAE residents to convert their assets directly into Bitcoin and Ethereum.

Through trading pairs listed on M2 spot markets, users can exchange Bitcoin and Ethereum for dirhams and vice versa. In addition, users can deposit and withdraw dirhams. The team believes that the new integration allows users to quickly adapt to market changes and easily convert their local currencies into cryptocurrency.

M2 CEO Stefan Kimmel made the following statement on the matter: “We are working to expand our offerings to the MENA region and reduce the friction for clients switching between traditional finance and crypto assets, this is an important step for M2 ADGM.”

Kimmel also explained that, thanks to the integration, UAE residents can trade using familiar banking services along with the functionality and security of M2. The executive also emphasized that the move is regulated by the UAE government, which he said has one of the strictest regulatory frameworks in the world that prioritizes consumer protection.

Author's opinion. Against the backdrop of the general nightmare of cryptocurrencies in the US and Trump's slogans that he is all for the development of the crypto industry (but let's not forget that so far these are all election slogans and nothing more, and promising is not getting married), in the UAE (it is from the BRICS association) crypto instruments have been quietly and calmly introduced into legal circulation. And access to them has been simplified as much as possible. You simply log into your e-bank (for example, from your phone) and exchange dirhams for Bitcoin or Ethereum.

That is, there is a clear contrast, where some are building the foundation-infrastructure for the next three to four decades, while others are further consolidating power in the banking sector.

P.S.: if you use crypto exchanges – do not keep your hard-earned money there. Log in, do your business and withdraw to a personal non-custodial wallet. Exchanges are not our friends.

Source link