30s Summary

In 2024, the global perception of Bitcoin shifted, with the US president-elect suggesting possession of the cryptocurrency and other countries considering doing so. The EU insisted on stricter rules on crypto exchanges, delisting non-compliant stablecoins. The UAE emerged as a major player, introducing new laws, licenses, and tax exemptions for virtual asset service providers (VASPs). Potential legislative changes hinted at for 2025 include stronger anti-money laundering rules, clear stablecoin governance, and increased international cooperation on crypto regulation. Note that this is discussion, not legal or investment advice.

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Hey, Irina Heaver here, just your regular Bitcoin and crypto lawyer who wants to chat about 2024 – the year everything started to shake up in the crypto world. As we’re seeing more and more people diving into the crypto pool, governments around the globe have decided it’s time to jump in and lay down some rules.

The US president-elect has even hinted about keeping a stash of Bitcoin up his sleeve. This has sparked a lot of excitement, and even sparked talk about other big player countries, like Russia, Japan and Thailand, considering doing the same. This signals that governments are finally treating Bitcoin like a serious asset, rather than just a sideline novelty.

Meanwhile, across the pond, the European Union has insisted that crypto exchanges be stricter about who they allow onto their platforms. They have delisted non-compliant stablecoins, pushing USDt out of its comfort zone. Despite this, though, Tether seems to be doing just fine, keeping its place in the market strong.

Now let’s talk United Arab Emirates. They’ve really stepped up their game! They’ve got five regulators looking after virtual asset service providers (VASPs) and have also rolled out a handful of new laws, licences and tax exemptions.

Interestingly, Donald Trump’s plan to have a stockpile of Bitcoin in the US has lit a fire under other countries. Rumor has it that six other governments, including heavy hitters like Russia, Japan, and Thailand, are looking to follow suit. This kind of aggressive move shows that big governments are starting to see Bitcoin as a strategic asset rather than just a little side experiment.

Over in Europe, the European Union’s Market in Crypto-Assets (MiCA) regulation has forced crypto exchanges to delist non-compliant stablecoins ahead of the regulatory deadline, effectively pushing USDt out of a secondary market. Despite this move, Tether is not weeping. It has continued to increase its market share in spite of the EU’s regulatory shake-up.

Back in the UAE, some notable changes include the Central Bank of the UAE (CBUAE) chalking up rules for the issuance of stablecoins. In addition, they’ve put a time limit on things, so that by next year businesses in the UAE will only be able to accept crypto payments in dirham-backed stablecoins issued by CBUAE-approved entities.

However, a couple of things need to be straightened out. Yes, all cryptocurrency transactions were made VAT-free from Nov. 15, 2024, but this only applies if you’re making huge amounts of trades on UAE-based exchanges and getting hit with VAT on exchange fees. So don’t believe everything you read on Twitter. And another thing to remember, despite the global crypto shakeup, salaries in the UAE are NOT being paid entirely in Bitcoin.

Another interesting development is with marketing. If you’re promoting digital assets in the UAE, be prepared to follow stricter guidelines from the Virtual Assets Regulatory Authority. You need to provide clear risk warnings, avoid promising returns, and operate within regulated frameworks. Breaching these rules could land you in trouble with a fine of more than $2 million.

Regulation has also attracted some big names like Binance, Crypto.com, OKX and Bybit – all of which have set up camp in the UAE, offering a range of services from exchange and lending to derivatives trading.

We’re not sure what the future holds, but it’s clear that 2024 initiated a bigger trend of token issuance regulation, stablecoins, and decentralized finance platforms. Even though these rules are getting stricter, it’s not stopping more big players from being lured to the UAE.

So what’s next for 2025? Well, brace yourself for even stronger anti-money laundering rules, more defined stablecoin governance and deeper cooperation between countries when it comes to regulation.

Just remember this article doesn’t have all the answers and isn’t legal or investment advice, it’s just a friendly chat from your neighborhood crypto lawyer.