Why do Dubai banks not accept crypto payments? (While exchanges are licensed)

[FreedomSearcher]

For example:

Tried to send $20K from Mashreq to Binance bank account in the Seychelles, but the bank didn’t wanna complete this transaction “because crypto is not allowed”…

And this while Dubai and Abu Dhabi licensed several exchanges & are trying to be the crypto hub or the world…

So my question is why banks still not allow this.

(Maybe some banks and some exchanges work, but I’m asking why there is any difficulty at all.)

P.S. I had to call the bank to get my money back… Frustrating.

 

[Sols]

It's about risk management. The banks have decided that transactions involving crypto are too risky.

Risk of money laundering is one. Risk of regulatory reprisal is another.

Risk of losing correspondent banking relationship is another. Banks in UAE use foreign banks to access major international currencies. The banks that they rely on (their correspondent banks) are imposing restrictions and expectations that make it so the banks in UAE can't or don't want to handle crypto related payments.

The value from helping a handful of crypto investors move money around is nothing compared to the importance of having access to USD, EUR, GBP, AUD, and so on.

 

[JackAlabama]

For example:

Tried to send $20K from Mashreq to Binance bank account in the Seychelles, but the bank didn’t wanna complete this transaction “because crypto is not allowed”…

And this while Dubai and Abu Dhabi licensed several exchanges & are trying to be the crypto hub or the world…

So my question is why banks still not allow this.

(Maybe some banks and some exchanges work, but I’m asking why there is any difficulty at all.)

P.S. I had to call the bank to get my money back… Frustrating.

business decisions. They can just not like it because the sky is blue .

 

[MiddleEuroAsia]

For example:

Tried to send $20K from Mashreq to Binance bank account in the Seychelles, but the bank didn’t wanna complete this transaction “because crypto is not allowed”…

And this while Dubai and Abu Dhabi licensed several exchanges & are trying to be the crypto hub or the world…

So my question is why banks still not allow this.

(Maybe some banks and some exchanges work, but I’m asking why there is any difficulty at all.)

P.S. I had to call the bank to get my money back… Frustrating.

Not all UAE banks will work with crypto, some work with regulated exchanges or to put it right, don't oppose money flowing in from these exchanges.

money coming from kaken (specificaly their correspondent bank - bank frick) gets credited to my ADIB bank account without any issue, the same goes for ENBD bank + nexo exchange.
but I have a good relationship with said banks, and I play it safe with low to mid 5 figures (Although, i recieved 6 figures before and nothing happened).

for bigger amounts, nothing beats P2P/OTC transactions. it's Safer and better.

But to answer OP's question, you are asking why the bank rejected a transfer to the most popular exchange on the planet, if you want to send money to binance, send it via an mediator/EMI like advcash, and then to binance.

 

[Singa]

for bigger amounts, nothing beats P2P/OTC transactions. it's Safer and better.

When you say P2P, you mean doing P2P thru bank transfer? Meaning the other counterparty send you to your bank account !

 

[JohnnyDoe]

For example:

Tried to send $20K from Mashreq to Binance bank account in the Seychelles, but the bank didn’t wanna complete this transaction “because crypto is not allowed”…

And this while Dubai and Abu Dhabi licensed several exchanges & are trying to be the crypto hub or the world…

So my question is why banks still not allow this.

(Maybe some banks and some exchanges work, but I’m asking why there is any difficulty at all.)

P.S. I had to call the bank to get my money back… Frustrating.

Spend a couple of days inside a bank’s HQ and you will find the answer to this and all other questions.
The real unanswered question is how do banks still exist?

 

[troubled soul]

for bigger amounts, nothing beats P2P/OTC transactions. it's Safer and better.

So you can transfer any big amount using OTC in your Dubai bank account without any problem?

Am I getting right???

 

[JackAlabama]

Spend a couple of days inside a bank’s HQ and you will find the answer to this and all other questions.
The real unanswered question is how do banks still exist?

1) In the core economy, banks are used as primary dealers to sell gov debt and hence are helping the govs to finance themselves.
2) The rest of the world is hostage by the core economy for clearance of commerce (still, but this is ending).

 

[MiddleEuroAsia]

When you say P2P, you mean doing P2P thru bank transfer? Meaning the other counterparty send you to your bank account !

Correct.

So you can transfer any big amount using OTC in your Dubai bank account without any problem?

Am I getting right???

Correct, but you should always make sure that you have documents to back your claims - just in case.

How valid should be these documents? it depends and whether you expect any entity would look deeper into your transactions or not.

 

[uplana]

How valid should be these documents? it depends and whether you expect any entity would look deeper into your transactions or not.

An invoice for the buy or a screenshot for the trade would be sufficient. Or you do a print of the transfer from your bank account to the exchange where you buy your crypto.

 

[MiddleEuroAsia]

An invoice for the buy or a screenshot for the trade would be sufficient. Or you do a print of the transfer from your bank account to the exchange where you buy your crypto.

Invoicing, contracts...etc. There's more to that, but I don't think the public forum is the place to discuss such things