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The United Arab Emirates (UAE) now holds $40 billion in Bitcoin, according to a report shared by Binance founder Changpeng “CZ” Zhao. The Gulf nation has spent years building the foundation for this moment. Government initiatives, progressive regulations, and an open-door policy for blockchain businesses have all contributed to this Bitcoin boom. Dubai’s crypto empire Dubai has been pulling out all the stops to attract crypto companies since launching the Virtual Assets Regulatory Authority (VARA) in 2022. The Dubai Multi Commodities Center (DMCC) Crypto Center is a big deal too, helping draw blockchain startups all over the world. Regulation is where the United Arab Emirates has truly outsmarted its competitors. Instead of treating crypto as a threat and stifling innovation with heavy-handed laws, the country created a framework that balances control with creativity. UAE growth YoY in value received by transfer size. Source: Chainalysis The Securities and Commodities Authority (SCA) oversees virtual asset activities nationwide. In Dubai’s financial free zones, the Dubai Financial Services Authority (DFSA) handles the rules. In June, the United Arab Emirates introduced the Payment Token Services Regulation. This law requires that crypto payments can only be made using stablecoins backed by the Emirati dirham and approved by the Central Bank of the UAE (CBUAE). Abu Dhabi Global Market (ADGM), another financial hub, has its own set of crypto rules. Reportedly, stablecoin issuers must back their tokens with reserves and maintain complete transparency at all times. Bitcoin’s explosive rise From July 2023 to June 2024, the UAE received $34 billion in cryptocurrencies—a 42% increase from the previous year. Bitcoin leads the pack, capturing 19% of the market share. Stablecoins aren’t far behind, accounting for 51% of all crypto activity. The number of crypto users in the UAE is expected to hit 3.78 million by 2025. That’s a…

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Filed under: News - @ December 22, 2024 1:27 pm