Bitcoin price rose 0.55% on a low-volatility weekend and is currently trading at $62,400. Following widespread market reassurance, BTC price showed sustainability at $60,000 support, prompting buyers to regain bullish momentum. This recovery could further accelerate as the UAE Federal Tax Authority (FTA) recently announced VAT exemption for the transfer and conversion of virtual assets.
Will Bitcoin Prices Rise Amid New Value Added Tax Exemption for Crypto Assets in UAE?
The UAE FTA recently announced significant amendments to value added tax (VAT) regulations. This includes an exemption for the transfer and conversion of virtual assets with retroactive effect from January 1, 2018.
This move will make the UAE a favorable hub for crypto investments, as the easing of the tax burden could significantly increase the country’s attractiveness for crypto-related businesses.
The audit firm revealed that in the UAE, the term “virtual asset” is classified as “a digital representation of value that can be traded or converted digitally and used for investment purposes.”
Companies engaged in virtual asset services should analyze how the VAT exemption affects their retrospective VAT position, particularly with respect to input tax credits. In some cases, voluntary disclosure may be necessary to amend past filings and ensure compliance.
Additionally, the UAE’s Virtual Assets Regulatory Authority (VARA) and Securities and Commodities Authority (SCA) have decided to streamline the licensing and supervision of virtual asset service providers (VASPs), furthering the country’s efforts towards a cryptocurrency-friendly environment. is emphasized.
This development could encourage broader adoption of cryptocurrencies and accelerate investment in major assets such as Bitcoin to drive price appreciation.
BTC price needs further decline before next rally
Over the past four days, Bitcoin price predictions showed a modest rebound from $59,840 to $62,344, marking a 4% growth. This bullish trajectory can be attributed to a combination of support for the $60,000 and 200-day EMA and market easing due to geopolitical tensions in the Middle East.
However, this reversal lacks confirmation and the price could seek support back towards $60,000. If this level holds, BTC price could rise by 7.7% and challenge the resistance trendline of the flag pattern. Since March 2024, this chart setup has had a steady correction between two downtrend lines, providing dynamic resistance and support.
A successful break through this resistance is critical to triggering a dominant uptrend and heading for the $80,000 high.
BTC/USD -1 day chart
Conversely, if Bitcoin price falls below the $60 support or reverses from flag resistance, sellers could accelerate their bearish momentum. A potential decline could retest the $52,000 or $50,000 support.
Frequently asked questions (FAQ)
The UAE Federal Tax Authority (FTA) recently announced a VAT exemption for the transfer and conversion of crypto assets, making the country more attractive for crypto-related businesses. This move could increase demand for Bitcoin and other cryptocurrencies
Bitcoin price is forming a flag pattern, indicating that the bullish trend could continue if it breaks through the resistance.
Bitcoin price is holding steady at the $60,000 support level, supported by the 200-day exponential moving average (EMA).
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Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies and continues to explore opportunities driven by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
