UAE Welcomes Major Cryptocurrency Firms as Local Market Grows
The Emirates’ proactiveness has “successfully attracted” key crypto firms by creating an attractive environment for them to thrive, expert says
SwissBorg, one of Europe’s leading cryptocurrency wealth management apps, launched in the United Arab Emirates (UAE) at the end of November to cater to the growing market within the country.
“The opportunity is to grow in an environment where more and more entrepreneurs from different horizons are permanently moving to the UAE and capture the growth of a region that is not only positioned well geographically but is also booming economically,” Anthony Lesoismier, co-founder & chief strategy officer at SwissBorg, told The Media Line.
Crypto’s reputation has been under the spotlight recently due to the risks crypto businesses are facing over constantly changing rules, since the market remains unregulated. There currently is a welcoming environment for dealing in cryptocurrencies. But with the recent announcement that FTX, a crypto exchange platform, filed for bankruptcy last month, many questions have been raised about cryptocurrency.
The United Arab Emirates is launching multiple initiatives to transform the country into an international hub for cryptocurrencies as well as metaverse and blockchain-based projects. The Emirati government has taken audacious steps in creating adapted frameworks at a time when other jurisdictions remain hostile to the industry.
According to the Gemini cryptocurrency exchange 2022 report, “Global State of Crypto,” around 35% of the UAE’s population have purchased crypto tokens. Meanwhile, about 32% of Emiratis are likely to invest in crypto in 2023.
“The United Arab Emirates is launching multiple initiatives to transform the country into an international hub for cryptocurrencies as well as metaverse and blockchain-based projects. The Emirati government has taken audacious steps in creating adapted frameworks at a time when other jurisdictions remain hostile to the industry. This approach has created one of the highest growth rates for the sector in the world,” Abdelhadi Laabi, chief marketing officer of Emporium Capital Global Trading, told The Media Line.
On November 8, the UAE launched the Middle East, Africa and Asia Crypto and Blockchain Association within Abu Dhabi’s free economic zone, with an eye to develop both blockchain and crypto ecosystems across the region and in Asia as well. This is a not-for-profit entity that facilitates regulatory solutions, as well as creates commercial opportunities and invests in education to support industry growth.
“The Middle East, Africa and Asia Crypto and Blockchain Association is the materialization of the presence of key players in the industry among them large international crypto exchanges, banks and regulators, among others, which could vie to improve the sector through more direct collaboration and coordination. There are currently more than 1,000 organizations involved in crypto in the UAE and that number is continuously growing,” Laabi added.
According to Laabi, the country’s proactiveness has “successfully attracted” key crypto firms by creating an appropriate environment for them to thrive.
“The dynamic nature of the local economy also makes it a good candidate to integrate these new technologies into daily business and life,” he said.
The UAE has deftly become a credible place for raising money and doing business in cryptos with both local and international players in healthy competition
“The regulatory framework is also moving in the right direction, which can open a lot of new opportunities for the region. With the formation of the Regulation of Virtual Assets and Dubai Virtual Assets Regulatory Authority earlier this year, Dubai’s vision is to become one of the leading jurisdictions for entrepreneurs and investors of blockchain technology,” according to Lesoismier.
SwissBorg was able to raise “200 million United Arab Emirates dirham (AED) via a successful Initial Coin Offering across 146 countries from 25,000 individual contributors across the globe,” the company announced.
“We see big names such as Binance, the ‘Amazon of cryptos,’ talking about settling their headquarters in Dubai. The UAE has deftly become a credible place for raising money and doing business in cryptos with both local and international players in healthy competition,” Lesoismier concluded.