The United Arab Emirates (UAE) has become a burgeoning hotspot for crypto businesses, as they find the region to offer a more attractive and accommodating environment for growth compared to the United States.
As the UAE sees a surge in crypto-related activities, experts and executives argue that it is the ideal destination for companies looking to establish themselves in the cryptocurrency sector.
Favorable regulatory environment
One of the major factors driving crypto businesses to the UAE is its proactive and business-friendly regulatory framework.
According to Saqr Ereiqat, co-founder of venture-building firm Crypto Oasis, the UAE has a more streamlined and accessible regulatory environment than the complex and fragmented landscape in the U.S. Ereiqat made these statements to the media outlet Cointelegraph.
The forward-looking regulations in the UAE have made it easier for companies to navigate the crypto sector and attract global talent.
In addition to its supportive regulations, the UAE also boasts a significant amount of capital, which can be extremely beneficial for crypto companies seeking funding for their projects.
The region’s growing interest in cryptocurrencies and blockchain technology has led to the establishment of over 1,800 Web3 organizations, employing more than 8,000 individuals.
Crypto leaders’ perspectives
Top executives in the crypto industry have also taken notice of the UAE’s potential as an international hub for cryptocurrency businesses.
Coinbase CEO Brian Armstrong, in a fireside chat at the Dubai FinTech Summit, admitted that the U.S. might be “a little bit behind” in terms of regulatory clarity. Armstrong also mentioned that the country is an exciting potential international hub for Coinbase.
Ripple CEO Brad Garlinghouse shared similar sentiments at the same event, expressing his frustration with U.S. regulations. Garlinghouse revealed that defending Ripple against the U.S. Securities and Exchange Commission is projected to cost the company $200 million.
UAE’s growing crypto ecosystem
The Crypto Oasis Ecosystem Report, launched during the Dubai FinTech Summit, highlights the rapid growth of the UAE’s crypto ecosystem, with over 1,800 organizations identified as of Q1 2023.
These organizations are involved in crypto, blockchain, metaverse, and Web3 technologies and employ more than 8,650 professionals. Native organizations account for 70.5% of the total, while non-native organizations make up the remaining 29.5%.
During Q1 2023 alone, over 150 new organizations were identified, bringing in more than 350 new professionals to the thriving ecosystem. Approximately 72.8% of these individuals work for native blockchain organizations, while the remaining 27.2% work for non-native companies.
The second edition of the Crypto Oasis Ecosystem Report, developed in collaboration with the DLT Science Foundation and Roland Berger, offers a comprehensive summary of the UAE’s blockchain evolution driven by Web3, cryptographic, and blockchain technologies.
The report has become an essential resource for policymakers, investors, and entrepreneurs looking to navigate the rapidly evolving landscape of blockchain technology in the region.
The UAE’s commitment to fostering a conducive environment for crypto businesses and embracing future technologies has made it an attractive destination for Web3 enthusiasts.
With its proactive approach to regulation, talent immigration, and government support, the UAE is poised to become a leading global hub for cryptocurrency and blockchain innovation, providing a more appealing alternative to the U.S. for businesses in the crypto sector.
