The mainstream adoption of cryptocurrencies has brought immense potential to the fintech industry, and some of the capabilities have spilled over into
The mainstream adoption of cryptocurrencies has brought immense potential to the fintech industry, and some of the capabilities have spilled over into the real estate market. Subsequently, the real estate sector is evolving to accommodate a new crop of investors who prefer making payments using crypto.
The trend of investing in real estate with crypto gained momentum in 2021 following a market explosion that saw Bitcoin (BTC) breach the $60,000 mark. Today, numerous jurisdictions have amended their real estate laws to allow property purchases using crypto due to their transformative impact.
Alexander Tkachenko, CEO and Founder of the VNX liquidity mining platform, told Cointelegraph that the full capabilities of crypto in real estate remain untapped.
“There is still a huge demand for alternative financial and payment instruments around the world,” he said while adding that favorable regulations would go a long way in creating a more enabling environment for both industries:
“Development of regulation that will create clear rules for industry players and protect investors.”
Scott Scherer, CEO of Owners Unity — a company that allows homeowners to derive passive income from their assets through a decentralized finance (DeFi) model — echoed Tkachenko, telling Cointelegraph, “Investors and governments have come to accept the fact that crypto is here for the long term.”
He added that investors are increasingly using cryptocurrencies to transact due to the efficiency of crypto networks as compared to conventional banks.
Anastasia Kor, the chief marketing officer and board member of the innovative MetaFi ecosystem, Choise.com, told Cointelegraph that novel blockchain concepts such as real estate tokenization also appeal to global investors:
“The projection that tokenization will help to make real estate more liquid is not far from the truth. Tokenization will position the luxury properties that are confined to a region and make them global and accessible to interested buyers and investors around the world.”
So, which countries currently support real estate purchases with crypto?
Thailand
Thailand was among the first Asian countries to legalize cryptocurrency use. The nation presently allows real estate buyers to make payments using crypto. Investors who wish to use this mode of payment are required to seek the services of local accredited real estate agencies that accept virtual currencies.
While the nation had previously banned cryptocurrency trades, the ban was lifted in February 2014. Today the trading of major cryptocurrencies such as Bitcoin, XRP (XRP), Ether (ETH) and Stellar (XLM) is allowed in accordance with rules stipulated by the Thai Securities and Exchange Commission (SEC).
It is worth noting that while individuals are allowed to deal in cryptocurrencies, regulated financial institutions operating in the country, including banks, are not. Consequently, buyers looking to buy property in Thailand using crypto are expected to make use of alternative money transfer systems for transaction settlement.
United Arab Emirates
The United Arab Emirates is a top business destination and is emerging as a major crypto hub, with many international crypto organizations setting up shop in the country to capitalize on the budding status. The nation’s cryptocurrency market has grown multi-fold over the past two years and is projected to grow ten-fold over the next couple of years, all conditions remaining constant.
For a long time now, the nation has been a paragon of exemplary architectural marvels which have put the country on the map as a leading Middle East/North Africa real estate powerhouse. Some of the nation’s radical structures have been developed through government-led initiatives aimed at stimulating interest in the local property market.
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The convergence of the crypto and real estate sectors has prompted the establishment to allow the synergy of the two industries in an effort to open up the real estate sector to global investors and accelerate the development of its non-oil economy.
Presently, crypto users in the UAE can purchase houses, villas, apartments, and buildings using digital currencies through authorized agencies.
On the regulatory front, the central bank has yet to designate cryptocurrencies as legal tender, so there are a few limitations such as the lack of crypto service provision by banks. However, crypto transactions among individuals and some regulated real estate agencies are allowed.
Turkey
Cryptocurrency usage is high in Turkey, with over eight million Turkish citizens owning digital currencies. Adoption is spurred by myriad factors including runaway inflation, which has led to the devaluation of the Turkish lira. The national currency has lost over 50% of its value against the United States dollar over the past two years.
With more people using cryptocurrency to transact, real estate agencies in the country are beginning…
cointelegraph.com