A new digital asset exchange designed to make it possible for investors to buy, sell, and trade in various online Cryptocurrencies has been launched by the Dubai-based blockchain start-up ArabianChain.
The new platform allows users to deposit and trade coins including ArabianChain’s DubaiCoin, Bitcoin, Ethereum, Ripple and several other Cryptocurrencies. The company expects to add more currencies in the near future. There is no registration fee to join the exchange but low competitive charges will be levied on deposits, withdrawals and trading.
Mohammed Alsehli, ArabianChain founder and CEO, said that the demand for trading in digital currencies has grown exponentially especially with the astonishing surge in valuation of Cryptocurrencies like Bitcoin and the swift progress of blockchain technology. Alsehli is optimistic that the region is ready for a user-friendly platform that makes it possible for the trading of digital currencies in secured environments.
Alsehli further added that ArabianChain is working on a couple of options to allow uninterrupted cash deposits into the system while also allowing peer-to-peer trading of Cryptocurrencies.
In explaining the rationale for the launching of the digital assets exchange, Alsehli said that many Middle-East-based investors are more likely to use local Cryptocurrency exchanges located in the region rather than those based in far away places such as Europe and the United States.
Alsehli was further quoted saying, “It’s usually a case of convenience, especially when we talk about fiat currencies involved. For example, when you want to deposit cash to Switzerland rather a system that exists here in the region, it is way easier to deposit in a local exchange. If you’re based in the United Arab Emirates, it’s just a matter of a day, or a couple of hours,” he added. “You have a legal entity in the region you can actually reach and approach, a company and a face that you know. It adds an element of trust.”
He also pointed out that many foreign-based exchanges, such as the US-based CoinBase restrict trading on their platform to traders based only in certain geographical areas.
When Alsehli was asked if value-added-tax (VAT) would apply to the Cryptocurrencies traded on his platform, he responded that this is not certain yet as the argument is still being made whether they should be regarded as a currency or a commodity. He however pointed out that since trading in digital currencies fall under the service sector which is naturally taxed, so too VAT technically applies to it.
“But for now we didn’t apply that into it,” he added. “We need to check with the regulator.”