UAE Blocks Stablecoin Salaries – Why Digital Nomads Are Affected

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If you’re a digital nomad paid in crypto, the UAE may not be a good place for your work.

According to recent reports, the UAE does not allow workers paid in any crypto to receive that salary while in the country. The rule reportedly includes stablecoins. This is a clear contradiction to its efforts to become an ever-growing crypto hub, welcoming local and foreign industry-related investment.

Semafor reported that workers paid in cryptocurrency are not even eligible for a digital nomad visa. “Even if that is in a US dollar-denominated stablecoin and like triple the minimum threshold, [cryptocurrency] is not recognized as a salary,” said Alex Scott, who leads community development for Solana in the Middle East.

The crypto-friendly hub(?)

As noted above, this exclusion is highly surprising given the UAE’s efforts to attract this exact community. What’s more, marrying the digital nomad visa system with the crypto industry is bound to attract a high number of these individuals, potentially even collectives.

The official website doesn’t specify any crypto-related details. It only notes that the visa application requires proof of salary of at least US $3,500 per month “or equivalent”.

Also, in February, the Central Bank of the United Arab Emirates (CBUAE) granted regulatory approval for the nation’s first USD-backed stablecoin, USDU. This move placed the UAE among the earliest major jurisdictions to approve a central bank-recognized USD-pegged stablecoin, indicating a regulatory commitment to integrating digital settlement assets into the financial system.

Various companies are expanding in the region as well. Just recently, Ripple announced the Dubai International Financial Centre (DIFC) as its new Middle East and Africa (MEA) regional headquarters.  This push deeper into the UAE, with a goal to expand the team even further, shows a growing appetite for regulated blockchain-based payments in the region.

Moreover, the UAE is working to attract those escaping the Iran war, says the report, describing the crypto community in the UAE as “highly mobile, being overwhelmingly young, low on obligations, and able to work from anywhere.”

Yet, Solana’s Scott told the news outlet that most of this community of around 90 blockchain and crypto entrepreneurs decided to stay despite the conflict.

The post UAE Blocks Stablecoin Salaries – Why Digital Nomads Are Affected appeared first on TechGaged.com.