I know there are a few people on HIVE who are following my Dubai trip with close personal interest and I will keep you informed on every detail. This is not a trip just about finding an off shore bank account which was forced on me ,but also finding a safe crypto off ramp which was going to happen anyway. Next week is earlier than expected due to having my bank account closed in the UK on October 6th related to Brexit banking laws.
Over the last year I have been looking and researching trying to find a safe off ramp into a hassle free tax haven. There have been a few option countries which have positives and negatives and the United Arab Emirates with Dubai has no downsides. I guess the only downside is you have to travel to the UAE in order to open a bank account as that is one of their legal requirements.
There are many bank accounts one can open online hassle free, but they have their limitations and you are leaving yourself wide open to regulation. If you are like myself and are trying to succeed in crypto and have serious dollar values being made then finding an off ramp that suits your requirement is more important than ever.
I had to find an off shore account and crypto off ramp as my choices were limited with a choice between the UK or South Africa.
The UK has Capital Gains tax set at 18-24% and staking is set at 0-45% so in theory the crypto we make on HIVE falls into that category if we ever cash out. There is a £3000 exemption for Capital gains Tax for 2024-2025 which is not very much and a £12 570 personal allowance for income tax.
South Africa on the other hand is far worse with a tax free exemption of R40000 which is roughly £1700 and is a pittance. The extra gains are taxed at 40% and depending on your profits will be taxed at 45% which is steep.
I have found an off ramp which I believe is the best I can find and it involves having a bank account in Dubai. The Dubai banking regulations state that they are never allowed to share your banking details and you are protected by law. No government can ask for your details and this is important for your own privacy.
The one problem still remains and that is moving your crypto from an exchange directly to your bank account when cashing out. This information is not protected and governments will be given that information as part of being given the licenses to offer crypto to whatever country you reside in. Binance has already started this for SA for all deposits and withdrawals and it will not stop with SA and expect every country to have this implemented. Other exchanges will be forced to follow suit so finding an off ramp away from the exchange is also very important.
There is a company in Dubai called Pallepay which once you sign up you receive an account into which you can deposit your crypto. You can even go direct with your cold wallet and deposit over the counter as they are there to assist you. From there you can request they sell the crypto on your behalf by moving crypto into their account. The crypto is then sold and the money is transferred directly to your bank account within 2-3 working days. This is a bricks and mortar company with real people and for me this is important as if anything goes wrong I know where to find them in person. I will be visiting them on this visit next week and will have more information on which cryptos they accept (160 currently) and if they will accept HIVE or some other crypto. One can always ask and see what the process involves in getting a listing especially if at some point in the future HIVE is removed from certain exchanges.
The paperwork you require for a Dubai bank account is quite simple and here is the list.
1] Passport with entry stamp showing your visit is legal. One would need a 2 day stay to make the bank account happen. Day one is signing up and day two you collect your cards.
2] 6 month bank statements
3] Tax certificate showing you pay taxes
4] Proof of address wherever you live
5] If you have a pay slip it helps but not essential as bank account will show monthly income.
6] Some bank accounts require a minimum holding amount and the one I selected has a $600 minimum requirement. There is various interest rates on offer and if you pay in on a regular basis topping up the account your interest rates rise and there are various levels on offer. This I will get more information next week.
There are roughly around 10-15 banks offering off shore bank accounts in Dubai and I narrowed them down to this bank which I will also offer the details once completed. Some wanted you to sign up for their app before any assistance was offered and I felt that was not user friendly especially when you are trying to receive help in opening a new account. I was not going to sign up to 15 banking apps first to find out and why I selected this bank I am visiting next week. This bank offers 24 hour assistance with a call center manned by humans and this is what sold me on their bank.
This off ramp has taken quite a bit of thought and I believe it is one of the best options out there and have found nothing as good as this yet. Crypto regulation is going to happen and finding a safe route is going to be as important as making profits and why the time is required to find a route that suits your needs. This route could be used for anyone in the world if they felt they required a crypto safe haven.