According to reports, an exchange firm in Dubai is attracting crypto traders from various nations. This includes mostly those living in sanctioned countries like Iran and Russia.
The Dubai exchange firm, Coinsfera, is an over-the-counter (OTC) crypto platform. It allows users to carry out large trading volumes under the radar of the public market.
Afterward, it converts the cryptocurrencies into cash in the city. This process only takes a few minutes and requires the user to have an identity card.
Coinsfera Does Not Use The KYC Process
Furthermore, the platform will ask the user some questions which are not the same for most platforms. Most crypto firms make use of the Know Your Customer (KYC) process.
After the invasion of Russia on Ukraine, several Russian citizens fled to Dubai. This was because the United Arab Emirates remained neutral in terms of sanctions.
The country has not melted out sanctions on Russia or its users. However, popular crypto firms such as Coinbase and Binance have blocked the accounts of Russian users.
According to Bloomberg, several Russian users have been able to bypass restrictions by moving on Coinsfera. This crypto platform allows users to carry out sizable transactions.
Furthermore, the exchange firm has offices in London, Kosovo, Istanbul, and Dubai. It was created in 2015 and is serving several users in the country.
According to Coinsfera, the exchange is a cash point that allows customers to trade without restrictions. The firm’s official statement stated that users could easily transfer large amounts of funds at a low cost and in a short time.
Coinsfera Allows Users To Carryout Huge Transactions
The statement added that users could buy and sell BTC in Dubai using the original ID issued in any country. However, this raises suspicions about whether customers are using such processes for money laundering.
Meanwhile, an official of the government said the nation is working to combat illegal transactions and money laundering. This is to promote the financial stability of the country.
Also, Dubai is now growing as a digital hub for crypto users worldwide. In the past months, several firms have moved into the country.
Binance, one of the largest crypto exchange platforms, has gained a license to operate in the region. It has also made Dubai its headquarters.
At the start of the year, the FTX exchange also received permission from Dubai’s VARA to operate in the country. According to a representative for the company, Dubai offers credibility and certainty to exchange firms and the crypto sector.
As a result, FTX can offer its services and products to Dubai citizens while abiding by regulations.