Why You Need Specialized Crypto Accounting Services in Dubai?

Dubai is fast-evolving into a leading crypto hub because of its forward-thinking framework and zero income tax for individuals. They have also extended support for Blockchain innovation. With the maturing digital asset market, you will notice several complexities around the crypto transactions and tax compliance. This is true for a tax-free zone like UAE as well.

If you are a crypto investor, you need to hire the specialize crypto accounting services in Dubai. They can help you, whether you are a casual trader or NFT enthusiast. There are several reasons why you must look for a specialized accountant. Let’s understand these reasons in detail.

1.      In Dubai, individuals are not taxed for all financial gains, including the ones from crypto trading. However, when you look at the investors in UAE, there are several expats from US, UK, Canada and India. In other countries, the worldwide income is to be reported. The specialized accounting service will help you understand cross-border tax obligation and prepare compliant reports for home country. They will ensure that you don’t fall prey to hidden tax traps, such as crypto-to-crypto swaps and staking income. This means, even when you don’t owe taxes to the local government, you might need to report the gains correctly in your home country and track the transactions properly. In case you fail to do that you may face the consequences when you return to the home country.

2.      When you go with business setup in Oman as a crypto trader or investor, you might be involved with strategies that go beyond buy and hold. You might be involved with yield farming, liquidity provisions, and NFT flipping and staking rewards. With these activities, you can generate multiple income for your business. Each of them has different implication like valuation, documentation and reporting. The specialized crypto accounting services in Dubai have the requisite tools to handle the on-chain analytics with gas fees among deductible expenses. They can also handle the NFT cost basis and royalty calculations with reconciliation among wallets and DEXs. They have access to specialized tools like Koinly, CoinTracker and Cryption.

3.      VARA (Virtual Assets Regulatory Authority) is creating structure around the crypto operations in the UAE. If you are a high-volume investor or crypto business, you need to have KYC and AML compliance. At the same time, it is important to ensure transaction audit trails and treasury reporting with token issuance. Even when you are not registered, you need documentation for activities crossing specific thresholds.

4.     The biggest struggle of a crypto investor is managing centralized exchanges like Binance and Bybit as well as handling cold wallets like Ledger and Trezor. They also need to manage hot wallets and layer 2 networks plus sidechains. It is not possible for you to manage these transactions across platforms manually. This can lead to major errors. When you go with business setup in Oman, you need to ensure API integrations with CSV reconciliation and blockchain explorers to consolidate the data and identify the discrepancies. Using this data, you can plan future trades and report to the authorities. It can also prepare you for audits.