UAE: Bitcoin Donations Allowed for Charity During Ramadan

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Authorities in the UAE will be accepting Bitcoin and other digital currencies for donations this Ramadan, a top official said on Wednesday.

These will complement traditional methods of raising funds including cash, in-kind, or digital contributions. Fundraisers also come in other forms — from vouchers to SMS campaigns, markets, exhibitions, auctions, charity dinners. Some initiatives allow Good Samaritans to donate through monthly deductions, bank deposits, social media channels and digital platforms.

Authorities in the UAE are set to expand the scope of donation collection this Ramadan by accepting Bitcoin and other digital currencies, in addition to conventional methods such as cash, in-kind contributions, and digital transfers. Various avenues for fundraising exist, including vouchers, SMS campaigns, markets, exhibitions, auctions, and charity dinners, along with options for monthly deductions, bank deposits, and donations through social media platforms and digital channels.

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However, Mohammed Naqi, the director of the non-profit public associations department at the Ministry of Community Development (MoCD), cautioned against engaging in illegal fundraising activities. Only approved entities, including associations, federal and local authorities, and non-profit organizations, are permitted to solicit donations after obtaining proper authorization. Violators of these regulations face fines ranging from Dh200,000 to Dh500,000, along with potential imprisonment, and authorities conduct field visits to ensure compliance.

Penalties extend to individuals collecting or receiving donations from outside the UAE, with the possibility of doubled fines for repeat offenders. Entities falsely claiming charitable or humanitarian status without proper certification may also face fines of up to Dh100,000. Authorized entities are required to obtain permits for fundraising activities, with donations to be channeled through charitable organizations rather than individuals.

The legislation aims to prevent exploitation and mitigate the risk of terrorism financing, emphasizing the importance of verifying the credentials of licensed entities before making donations. A list of accredited organizations authorized to collect donations is available on the MoCD’s website, and suspected violations can be reported to their call center at 800623.

Also Read: Dubai Authority introduces reduced school hours for Ramadan

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