The United Arab Emirates is joining the Bitcoin mania. Earlier this week, it was announced that an Australian company will launch the first exchange online platform for Bitcoins in the UAE. In addition, in the spring of 2014, the first Bitcoin ATM in the country was installed in Dubai. Nevertheless, the Central Bank remains silent and cautious on this topic. Also, the Middle East is still one of the least integrated regions when it comes to digital currency in general.
However, many governments all over the world already have a decent experience with Bitcoin. However, this does not mean that they share a common opinion on the popular digital currency.
Exciting Laws Do Not Apply for Bitcoin
Most countries continue to lack rules and regulations on the use and legality of Bitcoins. Such is the case in Russia, Turkey, the Netherlands and Thailand, for example. Namely for that reason the Turkish financial regulator warns people to abstain from relying on this type of currency. The Netherlands, on the other hand, have a special law on electronic money. However, the government of the country refuses to put digital currencies under this category.
In contrast, there are countries in which Bitcoins are regulated to a certain extent, at least. Such is the case in Brazil, where they have a Bitcoin law since 2013. Germany tends to have a rule for everything you can think of and electronic currency is no exception. Bitcoins are regulated in a similar way as foreign currencies.
Although the Bitcoin is a relatively new type of digital currency, there are countries, which have a strong opinion on the topic. New Zealand, Canada and Finland have the most positive attitude towards it. In Canada, people are even allowed to use Bitcoins to pay their taxes.
Others, like Iceland, France and Denmark, are doing their best to keep their citizens away from Bitcoin. Denmark rejected to even see Bitcoin as a currency, whereas Iceland went as far as to prohibit any trading activity with Bitcoins.
Warnings against Bitcoin
Due this polarization of opinions, laws and regulations, almost every country warns its citizens of the potential dangers that the Bitcoin hides. As a start, anonymity is the currency’s biggest advantage and biggest disadvantage at the same time. If a user becomes a victim of Bitcoin fraud, he or she cannot trace the person who tricked them. Moreover, since most governments do not regulate the Bitcoin currency, customers will not even be entitled to protection from their own country.
But People Love it
Nevertheless, this does not seem to worry people, since the popularity of Bitcoin is growing almost all over the world. In Nicaragua, there are cases in which people use the electronic currency to purchase even properties, while in Japan the Bitcoin has become one of the most preferred alternatives to the country’s official currency. Turkey is among the most recent countries that have joined the digital currency hysteria. Even though the government there is against the free use of Bitcoin, the market is expanding with the speed of light.
So, what attitude should people and businesses in UAE adopt towards the Bitcoin? Probably, neutral will be just fine for now. South Korea, Malaysia, Ireland and Japan are all sticking to this rule for the time being.