According to a September 25 Chainalysis report, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency trading volume between July 2023 and June 2024. The total value received during this period is estimated at $338.7 billion, with the vast majority of the trading volume coming from institutional and professional investors. It was noted that 93% of the transactions were for $10,000 or more, while small retail investors accounted for only 1.8%.

It was emphasized that on-chain traffic in the region is mostly carried out through centralized exchanges, but the United Arab Emirates and Saudi Arabia have high interest in decentralized platforms. It was stated that the United Arab Emirates has become a global crypto hub with its regulatory clarity and forward-looking stance on digital asset technology.

In August 2024, the Dubai Court of First Instance accepted that cryptocurrencies are valid payments for employment contracts and that employees have the right to collect digital tokens specified in legal employment agreements. In September 2024, licensed virtual asset providers in Dubai will be allowed to provide services throughout the country. More recently, the Central Bank of the United Arab Emirates approved a custody insurance product that will protect financial institutions and their customers from losses such as hacking, internal fraud, and damage to custody infrastructure.

What do you think of these developments? Let’s discuss in the comments.