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On October 2, the UAE Federal Tax Authority (FTA) announced key amendments to its VAT framework, following Cabinet Decision No. (100) of 2024.
These changes, which come into effect on November 15, provide clarity on the tax treatment of virtual assets, tokens, and blockchain-based transactions.
“The US needs to follow if they want to be competitive." crypto analyst Borovik wrote in an October 6 social media post on X.
For the first time, the amendments formally address the VAT treatment of virtual assets, such as cryptocurrencies and digital tokens, by exempting certain transactions from the existing 5% levy. This includes the management of investment funds and the transfer and conversion of virtual assets, with the exemption retroactively effective from January 1, 2018.
These amendments signal the UAE’s effort to remain a global leader in fostering innovation within the digital asset industry while safeguarding the interests of both businesses and consumers.
A key highlight of the FTA’s amendment is the formal definition of "Virtual Assets." According to the new law, virtual assets are now recognized as digital representations of value that can be traded, transferred, or used for investment purposes.
A Financial Times report indicates that valuation in the private assets market continues to pose significant challenges due to the inherent complexities of these investments. Factors such as the opaque nature of some assets, less frequent pricing, and reliance on subjective estimates can complicate accurate valuation.
The Chartered Alternative Investment Analyst Association (CAIA) is actively advocating for enhanced valuation methodologies in the alternative investments sector.
The Federal Tax Authority (FTA) is the government entity responsible for administering, collecting, and enforcing federal taxes in the United Arab Emirates.
Carlos Domingo, CEO of Securitize, said that the company is facilitating crypto investors' access to on-chain real-world asset information without the need for coding or blockchain explorers.
Changpeng Zhao, founder of Binance, commented on DeepSeek's reported success in artificial intelligence trading, highlighting potential market effects and the likelihood of increased research and activity.
Vitalik Buterin, co-founder of Ethereum, has said that Polygon and Sandeep Nailwal have significantly advanced the ecosystem.
Binance announced on its website that it has updated the annual percentage rate (APR) for USDe on Binance Earn, offering a 7% flexible rate for eligible users from October 22 to October 30 (UTC).
Julian Hosp, Founder of Cake DeFi, has expressed concerns about the speculative nature of Bitcoin and MicroStrategy's stock, suggesting they are vulnerable to sharp declines when market sentiment turns negative.
Binance has announced the launch of direct USD deposits and withdrawals in select regions through BPay Global, a provider licensed by the Central Bank of Bahrain.
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