The UAE government announced on Monday that these rules will be aimed at clamping down on money laundering and terrorist financing after millions of people flocked to Dubai and Abu Dhabi to set up shop for their crypto exchanges and businesses.
UAE Watchdogs took action after they found a huge percentage of these firms running shady and illegal schemes that took stolen crypto, and laundered them overseas.
The government wants to now ensure that the region’s anti-money laundering and anti-terrorism financing standards are equipped to cover digital assets and protect consumers from this activity.
The new reporting requirements were introduced by the Ministry of Economy and Ministry of Justice in partnership with the UAE Financial Intelligence Unit (FIU). The government also consulted with the Executive Office for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).
According to the rules, real estate agents brokers, and law firms are required to report all transactions involving crypto to the FIU. This includes all transactions where payment is made, either in part or full, in cash equal to or above AED 55,000 (approximately $15,000), in cryptocurrencies or funds derived from a virtual asset, the UAE government said.
Since the government did not mention a threshold for reporting virtual asset payments for real estate, it follows that all crypto transactions, no matter how small, will have to be reported.
This is a huge blow to many of these ‘moon boys’ who have migrated to Dubai in an attempt to cover up their frauds.