Dubai expects more than 2022 cryptocurrency businesses to be operational by 1.000 as it accelerates efforts to revive its digital economy.
Free zones in Dubai and Abu Dhabi have implemented an advanced framework to encourage entrepreneurs in the crypto space to create exchanges while establishing rules to protect consumers.
Interest in cryptocurrencies and blockchain is growing, especially in the UAE
This is because consumers and investors are crowding digital assets with online payments gaining momentum. According to a survey by London-based Nickel Digital Asset Management, a growing number of institutional investors and wealth managers in the UAE plan to increase their exposure to cryptocurrency assets by 2023.
Cryptocurrencies are not authorized by the Central Bank of the UAE, although a number of cryptocurrency exchanges have been granted permission to operate within financial free zones, as stated on Bitcoin Revolution. The UAE dirham is the only legal tender in the country recognized by the Central Bank.
The DMCC Crypto Center - launched in May to promote cryptographic and blockchain technologies in Dubai - hosts more than 100 organizations operating in the crypto space, with another 900 having applied for licenses. There are more than 400 crypto companies operating in the UAE.
A new industry of talent
Ahmed bin Sulayem, executive chairman and head of the DMCC, is confident that there will be “well over” 2022 cryptocurrency firms in the UAE by the end of 1.000.
Digital assets, built around secure blockchain database infrastructure, are also gaining more interest from investors due to their potentially high returns. However, experts have also criticized assets such as Bitcoin, the world's largest cryptocurrency, for its volatility.
Ralf Glabischnig, founder and board member of the Swiss crypto hub CV Labs, said the Dubai market "will grow faster than any other", and attributed the current interest of investors and entrepreneurs to the business environment of the emirate.
“The most important thing when creating a new industry is talent. A lot of smart people came to Dubai and stayed here, ”he said. CV Labs also has a cryptographic center at the DMCC.
The UAE has introduced various measures to increase digital asset trading amid growing interest. Last month, the Securities and Commodities Authority signed an agreement with the Dubai World Trade Center Authority to support cryptocurrency trading.
Last week, Dubai also hosted the first Crypto Expo Dubai. This happens when investor interest in cryptocurrencies increases in the region.
BitOasis, a UAE cryptocurrency exchange, earlier this month said it raised $ 30 million in a funding round, which it will use to expand into the Middle East and North Africa.
