Russians liquidating Digital Assets in UAE in the Hunt for Safe Havens
Due to the invasion of Ukraine, Russians are being sanctioned globally. Therefore, Russians are investing in Dubai’s real estate industry to liquidate their assets. Thus, exchanges are all set to stop such activities.
According to the company executive and financial sources, digital currency exchanges in the United Arab Emirates (UAE) are requested to liquidate millions of billions of cryptocurrencies as Russians are directed towards UAE’s exchanges as they are considered a safe haven for their fortunes.
However, some of the customers are utilizing digital crypto money to invest in UAE’s real estate industry. On another hand, a few of them are also using cryptocurrency exchanges to convert their digital assets into fiat currencies in order to place them into legit financial systems. According to One crypto, they have received hundreds and thousands of queries from the Swiss brokers requesting to liquidate their billions of dollars worth of Bitcoin as they are afraid Switzerland will freeze their cryptocurrencies.
the executive said, adding his firm normally receives an inquiry for a large transaction once a month.
The exchange executive stated,“We’ve had like five or six in the past two weeks. None of them has come off yet – they’ve sort of fallen over at the last minute, which is not rare – but we’ve never had this much interest”.
“We have one guy – I don’t know who he is, but he came through a broker – and they’re like, ‘we want to sell 125,000 Bitcoin’. And I’m like, ‘what? That’s $6bn guys’. And they’re like, ‘yeah, we’re going to send it to a company in Australia’,” the executive added.
The Switzerland’s Economic Affairs Secretariat (SECO) stated in the statement that virtual assets are subject to the same financial sanctions Switzerland government has imposed on Russian assets and individual entities. Thus, if one investor is sanctioned their all crypto assets will be also frozen that are placed in the country’s financial systems of exchanges.
Moreover, Dubai which is considered the financial and business center as well as the growing crypto hub is becoming a magnet for the world’s rich investors, and the UAE’s denial to take a side between Moscow and Western allies has opened the way for Russian investors to liquidate their cryptocurrencies as their money is safe within country’s borders.
Furthermore, the financial sources in the UAE have confirmed that the Russian individuals are buying properties in Dubai with cryptocurrencies, as a way of getting out their assets from sanctioned jurisdictions and placing them into the Gulf state.
Thus, UAE’s cryptocurrency exchanges and platforms while giving few details stated, are all set to block accounts and freeze virtual assets of Russians sanctioned due to the invasion of Ukraine. Major cryptocurrency exchanges like Coinbase and Binance said they are also taking steps to make the crypto ecosystem secure and to halt criminal activities.