The meteoric rise of Bitcoin, hitting above US$20,000 last week, is getting all the attention of the world including UAE residents, who would like to explore including cryptocurrencies in their investment portfolio in 2018.
Personal finance companies like Holborn Assets gets enquiries from their clients seeking guidance on investing in cryptocurrencies.
Riyad Adamou, Chief Commercial Officer at Holborn Assets, says: “The global headlines around cryptocurrency, and Bitcoin in particular, have seen a surge in enquiries from our clients and members of the public in the UAE wanting to know how, and if they too should be investing.
However, with no regulation in the sector, it is not possible for a UAE resident make Bitcoin part of their investment portfolio in the same way they would when buying currency or shares through their personal finance advisor.
“Due to the unregulated nature of cryptocurrencies, as is the case with almost all other financial firms, we are not presently able to offer specific investment advice or facilitate the allocation of funds”, Riyad adds.
Awareness seminars on Cryptocurrency and Bitcoin
Companies like Holborn Assets are trying to raise awareness on these new asset classes by organizing seminars in the coming months.
“The seminars will be available to both Holborn clients and members of the general public alike, and will be aimed at clarifying the cryptocurrency markets and the underlying blockchain technology, allowing them to draw their own conclusions and make a more informed decision before investing”, says Riyad.
There are several meetup groups organizing informal meetings and talks for those interested in knowing more about cryptocurrencies. One such group is the Dubai Entrepreneurs Network (DEN), organized by Prashant Jain, who runs TimesofCoin.com, a portal solely focused on cryptocurrencies.
The majority of people in the UAE buying Bitcoin are doing so through an online portal, which they are then able to control through an App on their phone or laptop.
With the recent surge in the cost of Bitcoin, there are many who will have a made a sizeable profit from an investment. But the portals all come with a clear warning that as Bitcoin is not regulated it comes with a much higher risk than other investments.