According to Cointelegraph, a Sept. 25 Chainalysis report reveals that the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024. The total value received during this period is estimated at $338.7 billion, with the majority of transactions coming from institutional and professional investors. Notably, 93% of transactions were valued at $10,000 or more, while small retail investors accounted for just 1.8% of the volume.
Onchain traffic in the MENA region was primarily conducted through centralized exchanges. However, the report also highlighted significant interest in decentralized platforms in the United Arab Emirates (UAE) and Saudi Arabia. The UAE, in particular, has emerged as a global crypto hub, driven by regulatory clarity and a forward-looking stance on digital asset technology.
In August 2024, the Dubai Court of First Instance ruled that cryptocurrencies are valid payments for employment contracts, recognizing employees' rights to collect digital tokens stipulated in legal work agreements. This ruling came after a plaintiff, who agreed to a monthly salary in both fiat currency and EcoWatt tokens, did not receive the tokens from the employer and sought relief from the court. Initially, the court ruled for monetary damages without enforcing crypto payments, a position overturned in the August 2024 ruling.
In September 2024, UAE financial regulators further embraced digital assets by allowing virtual asset providers licensed in Dubai to service the entire country. The chairman of Dubai’s Virtual Assets Regulatory Authority (VARA) executive board stated that a new partnership with the UAE’s Securities And Commodities Authority (SCA) streamlines the regulatory process and provides comprehensive assurances against investor risk and fraud. Additionally, the Central Bank of the United Arab Emirates approved a custodial insurance product to protect financial institutions and their clients from losses due to hacks, internal fraud, and damage to storage infrastructure.
