Reality check: you can fund a purchase with crypto, but you settle & register in AED. The compliant path runs through a Virtual Assets Regulatory Authority [VARA] -licensed VASP/exchange that converts crypto → AED before closing. No shortcuts.

⚙️ The operating model:

=> Settlement currency: AED only. Title transfer & DLD registration follow standard UAE conveyancing.

=> Regulated off-ramp: A licensed VASP/OTC converts, remits AED to escrow, completes KYC/AML & source-of-funds.

=> Counterparties: Buyer, seller/developer or broker, licensed VASP, escrow/settlement bank, conveyancer.

📊 Risk & economics to manage

=> Price volatility: Pre-agree a conversion window (timestamped) + slippage tolerance.

=> Fees & spreads: Model platform fees, FX/transfer costs, on-chain fees, bank charges—build into the deal.

=> Compliance friction: Start KYC/AML + on-chain provenance early; expect enhanced due diligence.

📄 Term sheet / SPA must-haves

Conversion mechanics: Who converts, at what venue/benchmark, at which timestamp.

=> Fees ownership: Explicit allocation buyer vs. seller.

=> Proof of funds: VASP attestations + on-chain reports; timing & escrow triggers.

=> Escrow instructions: AED-denominated waterfall; funds-received confirmation before NOC & transfer.

➡️ Bottom line: Crypto is the source of funds; AED is the means of settlement. Keep it licensed, documented, and time-bound to remove execution risk.

To be continued:

Part 2: pricing mechanics, hedging options, escrow waterfalls.

Part 3: operating playbook for developers, brokers, and HNW buyers.

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