The UAE, particularly through its Dubai and Abu Dhabi financial hubs, continues to introduce initiatives and regulatory frameworks to attract crypto companies and investors.

Consider the latest update: The UAE announced value-added tax (VAT) exemptions for crypto transfers and conversions.

The UAE’s published changes will take effect on Nov. 15.

The Federal Tax Authority (FTA) on Oct. 2, published Cabinet Decision No. (100) of 2024 to update the executive regulation related to VAT.

The updated executive regulation includes more than 30 amendments affecting various industries.

The nation’s Federal Tax Authority, as per the details shared by business consultancy firm PwC, will apply these exemptions to managing investment funds and other crypto-related activities.

Additionally, PwC reports that the exemptions for the transfer and conversion of virtual assets are treated as effective from Jan. 1, 2018.  

Furthermore, the amendments address input tax recovery for crypto companies. PwC explains that in the UAE, crypto is defined as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”

UAE wants to be crypto-friendly

While several countries, including China and India, have been taking a step back when it comes to crypto adoption, the UAE is embracing it.

The country has been actively working to create a favorable environment for blockchain and crypto businesses. Dubai’s Virtual Assets Regulatory Authority is also playing a crucial role in regulating virtual assets in the UAE.

The VAT exemptions for crypto transfers and conversions could attract more crypto businesses to the UAE.

The country’s positive outlook on crypto is also visible from its growth in the market. A recent report from Chainalysis highlighted that the UAE received over $30 billion in crypto between July 2023 and June 2024.

This number has brought the country to the top as MENA’s third-largest crypto economy. Chainalysis also mentioned the rise in the number of venture capital funds and blockchain businesses in the UAE as a factor contributing to the country’s growth.

Donald Trump has widened his lead over Kamala Harris on Polymarket as the 2024 U.S. presidential election approaches. 

After a period of near parity in mid-August, Trump’s odds on Polymarket have surged several percentage points, with 53% of bettors favoring him compared to 47% for Harris.

This shift marks a comeback for Donald Trump, whose odds dipped after Joe Biden announced he wouldn’t seek re-election, resulting in a temporary boost for the current Vice President.

Despite the rise to 53%, Trump’s chances are much lower than the 72% peak following the Bitcoin 2024 conference in late July in Nashville, Texas.

Trump and crypto 

Trump’s resurgence can in part be attributed to his strong appeal among crypto investors, a demographic increasingly influential in this election, according to Coinbase.

His pro-crypto stance, including promises to support the Bitcoin (BTC) sector and blockchain initiatives, has resonated with crypto heavyweights.

On Aug. 27, Trump announced announced his fourth NFT collection, “Series 4: The America First Collection,” offering digital trading cards via Bitcoin Ordinals. Two days later, he announced plans to make the U.S. the “crypto capital of the planet” if re-elected, referencing his initiative, World Liberty Financial.

On the other hand, Harris’s campaign has struggled to maintain momentum among Polymarket users, particularly after key events like the Democratic National Convention, where crypto was notably absent from the discourse.

During this election season, both parties have catered to the crypto crowd, aiming to appeal to the crypto community and its financial contributions. As a result, Polymarket election bettors have been on quite the ride, and it’s expected that things will only get crazier as election season approaches.

Analyst claims that one of the main reasons behind Bitcoin’s recent downturn was movements from dormant addresses.

According to the CryptoQuant analyst, over 52,000 Bitcoins (BTC), held for less than three months, have been moved on-chain over the past three days. In addition, 75,228 coins aged between three and six months have also been moved.

These assets belong to short-term and mid-term holders. Per CryptoQuant’s data, 2,834 BTC tokens that have been dormant between six months and two years started making movements on-chain.

As the price continues to consolidate below the $60,000 mark, data shows that 16,003 Bitcoins aged five to seven years have entered the market.

The analyst claims these movements have been contributing to the market-wide bearish sentiment and “need to stop.” 

“When bitcoins that have remained dormant for a long time are moved, it’s usually in preparation for something, and you may see them used for selling.”

CryptoQuant analyst wrote.

While Bitcoin’s funding rate hints at a potential rebound for the asset’s price, the increased amount of dormant circulation could still trigger a further price drop.

Bitcoin is down by 0.2% in the past 24 hours and is trading at $59,750 at the time of writing. The asset’s market cap is currently sitting at $1.17 trillion with a daily trading volume of $33 billion.

The BTC Relative Strength Index is still hovering at the 46 mark, according to data from crypto.news price page. The indicator shows that Bitcoin is oversold at this price point but is getting close to the neutral zone as the price roams near the $60,000 mark.