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By Vasyl Ponomarov
In an era where technology continues to reshape traditional industries, the real estate market is not exempt from the transformative power of innovation. As the popularity of cryptocurrencies surges, a new frontier emerges for those seeking to diversify their real estate portfolios. With its picturesque landscapes and vibrant cultural heritage, Cyprus stands as an alluring destination for potential property investments. The ability to leverage the digital revolution and purchase real estate using cryptocurrencies makes this opportunity even more enticing.
Discussing the plan of making a deal of sell-purchase of real estate you must consider next steps. Let us imagine that an investor has cryptocurrency that he wants to use to pay for real estate. Investor shall stick to the plan which is following:
Preliminary Steps
Begin by researching the developer who is ready to accept crypto currency as a payment method. Usually the deal is supported by the virtual assert service provider who renders a cryptocurrency payment gateway to the seller of real estate. The end user, the future buyer, has to enter into the agreement not only with the seller of the property, but also with the virtual asset exchange service provider.
Ganna Voievodina, CEO of UAB Manimama Exchange, a virtual asset service provider, giving cryptocurrency payment gateway to several developers in Europe explains the above mentioned procedure in the following way: “Cryptocurrency payments are a regulated activity, and cryptocurrencies themselves are often used as a means of money laundering, according to regulators. Real estate purchase transactions are also an object of financial monitoring. The law of any country obliges a real estate professional to verify the source of funds that come from the buyer. Taken together, the implementation of a transaction for the purchase of real estate using cryptocurrency is a doubly controlled operation. Therefore, if you want to do this, turn to professionals who will help you do everything right and close the deal”.
So after making a decision to use cryptocurrency as a payment method, investors have to choose a virtual asset service provider exchange service provider and familiarize themselves with the virtual asset service provider who provides the gateway for the payment in real estate transactions. Company's services, reputation, and terms of engagement to initiate contact with the selected provider should be reviewed. As well as the process and requirements for utilizing cryptocurrency for real estate transactions.
Account Setup and Verification
Complete the necessary registration process with the virtual asset service provider to become a client. Undergo the full verification process by providing identification data to comply with regulatory standards. It mostly depends on the requirements of your exchange service provider, but the list of documents may vary, taking into consideration your country of residence, the nature of your job or business, and other factors.
Cryptocurrency Transfer
Open a cryptocurrency wallet with the exchange service provider to facilitate the secure storage of cryptocurrency and initiate the transfer to the designated wallet. It's worth reminding of basic but still important rules: carefully check the wallet address, have enough crypto to pay for the commission on your wallet, and mind the volatility and network congestion. For reassurance, you can first make a small payment to ensure the transfer goes smoothly and transfer the whole sum afterward.
Documentation and Compliance
Collaborate with the exchange service provider to prepare all necessary documentation confirming the source of the cryptocurrency funds. Undergo a comprehensive compliance check to ensure adherence to legal and regulatory requirements. You might be asked to provide invoices, contracts, or other evidence of your legitimate earnings. It may be annoying, so just keep in mind that it’s only because the crypto industry has a long regulatory path ahead of it.
Cryptocurrency to Euro Exchange
Execute the exchange of cryptocurrency for euros through the exchange service provider's platform. In this part, your involvement is absolutely minimal – this process falls under the responsibility of your exchange provider. Nevertheless, you still need to be aware of this step.
European Bank Account Setup
Seek assistance from the virtual asset service provider in opening a European bank or payment account to receive funds after the cryptocurrency-to-euro conversion. Your exchange service provider has to facilitate the necessary steps to open a European bank account. However, a bank can ask you for additional documents.
Real Estate Transaction
Work collaboratively with the exchange service provider and the property developer to facilitate the final payment under the real estate purchase and sale agreement using the euros in the European bank account. This is the final step of the payment process itself. After that, you only have a few bureaucratic processes regarding taking ownership of your new property.
Closing the Deal
Ensure all legal formalities are completed, including the transfer of ownership and any additional documentation required for the real estate transaction. Afterward, confirm the successful completion of the real estate transaction, with ownership officially transferred and all financial obligations met.
By following these outlined steps and collaborating closely with the exchange service provider and the property developer, the investor can seamlessly leverage cryptocurrency for the purchase of real estate while navigating the necessary legal and compliance processes.
Author Bio
Vasyl Ponomarov, CBDO of the ISM Guarantee Development LTD and Alexandra Court
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.