The widespread adoption of cryptocurrencies has brought immense potential to the fintech industry, and some of the capabilities have spread to the real estate market. Subsequently, the real estate sector is evolving to accommodate a new generation of investors who prefer to make payments using crypto.
The trend of investing in real estate with crypto gained momentum in 2021 following a market explosion that saw Bitcoin (BTC) exceeds the $60,000 mark. Today, many jurisdictions have changed their real estate laws to allow real estate purchases using crypto due to its transformative impact.
Alexander Tkachenko, CEO and founder of liquidity mining platform VNX, told Cointelegraph that all of crypto’s real estate capabilities remain untapped.
“There is still a huge demand for alternative financial and payment instruments around the world,” he said, while adding that supportive regulation would go a long way towards creating a more favorable environment for both industries:
“Development of regulations that will create clear rules for industry players and protect investors.”
Scott Scherer, CEO of Owners Unity – a company that empowers owners to earn 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 haul.”
He added that investors are increasingly using cryptocurrencies to conduct transactions due to the efficiency of crypto networks compared to conventional banks.
Anastasia Kor, chief marketing officer and board member of innovative MetaFi ecosystem, Choise.com, told Cointelegraph that new blockchain concepts like real estate tokenization also attract global investors:
“The projection that tokenization will help make real estate more liquid is not far from the truth. Tokenization will position luxury properties confined to one 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 was among the first Asian countries to legalize the use of cryptocurrency. The nation currently allows real estate buyers to make crypto payments. Investors wishing to use this method of payment are required to seek the services of licensed local real estate agencies that accept virtual currencies.
While the nation had previously banned cryptocurrency exchanges, the ban was survey in February 2014. Today, trading major cryptocurrencies such as Bitcoin, XRP (XRP), Ether (ETH) and Stellar (XLM) is authorized under the rules stipulated by the Thai Securities and Exchange Commission (SEC).
It should be noted that while individuals are allowed to trade cryptocurrencies, regulated financial institutions operating in the country, including banks, are not. Therefore, buyers looking to buy property in Thailand using crypto should use alternative money transfer systems for transaction settlement.
United Arab Emirates
The United Arab Emirates is a leading business destination and is emerging as a major crypto hub, with many international crypto organizations moving into the country to capitalize on the burgeoning status. The domestic cryptocurrency market has multiplied over the past two years and is expected to grow tenfold over the next two years, all conditions remaining constant.
The nation has long been a paragon of exemplary architectural marvels that have put the country on the map as a leading real estate powerhouse in the Middle East and North Africa. Some of the radical structures in the country have been developed through government initiatives aimed at stimulating interest in the local real estate market.
The convergence of the crypto and real estate sectors has prompted the establishment to enable the synergy of the two industries with the aim of opening up the real estate sector to global investors and accelerating the development of its non-oil economy.
Currently, crypto users in uae can buy housesvillas, apartments and buildings using digital currencies through authorized agencies.
On the regulatory side, the central bank has not yet designated cryptocurrencies as legal tender, so there are some limitations such as the lack of provision of crypto services by banks. However, crypto transactions between individuals and certain regulated real estate agencies are allowed.
Cryptocurrency usage is high in Turkey, with over eight million Turkish citizens owning digital currencies. Adoption is being driven by a myriad of factors, including runaway inflation, which has led to the devaluation of the Turkish lira. The national currency has lost more than 50% of its value against the US dollar over the past two years.
With more and more people using cryptocurrency to transact, real estate agencies across the country are beginning to accept crypto payments.
Investors can acquire property in the transcontinental country through regulated real estate agencies. People who invest at least $250,000 in fiat or the crypto equivalent in real estate purchases can also acquire direct citizenship if they wish through the Turkish Golden Visa program.
Portugal is a die most crypto-friendly countries in the European Union. As such, it is no surprise that the government has allowed investors to purchase real estate using cryptocurrencies. In previous years, buying real estate with crypto was allowed, but the money had to be converted to fiat for a transfer of ownership to be finalized. This changed in April when relevant new laws were introduced.
The latest statutes allow notaries to ratify real estate transactions involving crypto. Additionally, digital currencies do not need to be converted to fiat for transfers of ownership to be valid. The new rule categorizes these types of exchanges as barter agreements.
Montenegro is one of the most financially liberal nations in the Balkans, and when it comes to crypto, the nation has no special requirements for cryptocurrency transactions, including crypto real estate purchases. Notably, the country has in recent years made conscious efforts to become a major crypto center due to the potential macroeconomic benefits.
In April, this awarded by Ethereum co-founder Vitalik Buterin citizenship as part of a campaign to attract crypto investors to the country.
Property investors looking to buy property in Montenegro using cryptocurrencies encounter few problems as long as the transaction is sanctioned by a certified notary.
Georgia has a lot to offer investors and has many laws aimed at encouraging foreign investment. Investors who want to put their money in the country, for example, pay no tax on capital gains, including returns from crypto investments. There is also no currency transaction limit.
Although it is possible to buy real estate using cryptocurrencies in Georgia, it is important to note that cryptocurrencies are not regulated in the country, so the final purchase figures listed in the property registry must be in fiat.
Real estate purchases using crypto can only be made through certain licensed real estate agencies that offer this service.
Over 2.5 million Canadians own crypto, according to the October 2022 Finder Crypto Adoption Report. This dynamic has led to more real estate companies in the country accepting cryptocurrency payments.
For investors looking to buy property in Canada using cryptocurrency, licensed real estate companies that accept cryptocurrency payments to help ensure compliance.
Some real estate brokers also provide crypto-to-fiat conversion services to facilitate the process, as property sales in the official register must be in Canadian dollars.
Crypto users who wish to purchase property using digital coins should consult with tax advisors before beginning the purchase process to avoid tax complications, as Canadian regulations take taxes on capital gains seriously. capital on cryptocurrencies.
Cryptocurrencies have the ability to open up the real estate market, which is notoriously illiquid. Allowing crypto real estate purchases not only diversifies payment pathways, but also makes it easier for international investors getting into crypto to acquire real estate assets across the globe.