Best Crypto Brokers for Dubai and UAE in 2022

In order to purchase cryptocurrencies in the United Arab Emirates, you need;

• a passport or an ID card, a reliable internet connection
• a bank account (to make fiat deposits)
• a phone with a two-factor authentication set-up
• an exchange of your choice.

This article will focus on exchanges, ensuring that you are using a safe, reliable, and efficient means of purchasing crypto in the UAE.

Important Note: Bitcoin and other cryptocurrencies are not recognized as a legal
tender by The Central Bank of the United Arab Emirates; however, it is legal to trade
crypto assets in regulated exchanges

Rain, Etoro, and Binance are the three most used exchanges in the UAE. Rain and
Etoro are preferred due to their simplicity and beginner-friendly user interface.
Binance, on the other hand, offers advanced financial tools such as: initial coin
offerings (ICOs), futures and margins trading, crypto staking, and more. Binance is
the largest exchange worldwide, thus they offer the lowest maker and taker fees.
When choosing a crypto exchange in the UAE, you should consider your overarching
goal when investing in crypto assets. If you are a retail investor implementing a
simple dollar cost average plan, you might want to consider Etoro or Rain. However,
if you are an ambitious crypto trader that requires complex financial services,
Binance will be your best bet.

Though not as widely preferred, Bitoasis is a strong choice for investors in the UAE,
as it is based in Dubai. Since 2015, Bitoasis has been serving in North Africa and the
The Middle East. They have been in the UAE market for 6 years, making them a strong
competitor of Binance, Etoro, and Rain. From time to time, crypto traders and users
run into legal issues. This is because different countries and states have their own
laws and regulations around cryptocurrencies/exchanges. The fact that Bitoasis is
located in Dubai ensures that UAE-based traders do not run into legal trouble. While
Rain is also regulated in the Middle East, Bitoasis’ location is more convenient for
traders located in the UAE.

Now that we know what these exchanges offer, let’s assess what is perhaps the most
crucial criteria when it comes to picking an exchange: security.

Etoro: regulated by the Australian Securities and Investments Commission, the
Cyprus Securities and Exchange Commission, and the United Kingdom’s Financial
Conduct Authority, Etoro is a FINRA (Financial Industry Regulatory Authority)
member. With nearly $10 billion in assets, Etoro has never suffered from a significant
security breach. Compliant with PCI (Payment Card Industry) requirements, Etoro
allows users to directly purchase BTC with a credit card.

Binance: Binance is actively reviewed by governments and organizations – including
the US SEC and the UK FCA. In 2019, Binance suffered from a security breach,
resulting in the loss of $40 million in user funds. Luckily, Binance implements a
“secure asset fund for its users” structure – known as SAFU – to make up for users’
losses in such scenarios. While stolen funds were replenished, users’ stolen data
and information could not be retrieved. That being said, Binance is still considered a
safe exchange as long as users set up 2-factor authentication and watch out for
phishing attacks.

Rain: Rain is located in Bahrain, thus regulated and licensed by the Central Bank of
Bahrain. In the United Arab Emirates and the Middle East in general, Rain is
recognized as an approved crypto asset brokerage. Rain stores users’ funds in cold
storage wallets that require multiple signatures to access. Rain’s security measures
meet the Cryptocurrency Security Standard Level III – the highest security rating
attainable by an exchange. Fiat deposits are regulated and stored in bank accounts
by the Central Bank of Bahrain.

Bitoasis: The three main security implementations of Bitoasis are: email address
confirmations, platform encryption, and 2FA. While these three procedures limit
unauthorized access to users’ funds, Bitoasis is not reviewed or regulated by an
established authority. Private keys are the core elements of crypto asset security.
Bitoasis is in charge of maintaining users’ private keys; hence, user wallet security is
limited by their database security.

To conclude, investors located in the United Arab Emirates are free from any strict
government regulations – hence they can pick from an array of exchanges. While
Bitoasis stands out by the fact that it is physically located in the UAE, but it is not without
its severe security limitations. Binance seems like the optimal choice in this scenario.
Binance’s ability to offer complex financial services for low fees, solid security
standards, and an impressive track record ranks it above its competitors. However,
Rain and Etoro are still strong competitors of Binance, as their high-security
standards and user-friendly interface keep them in the race.