According to a survey by Nickel Digital Asset Management, London, interest in cryptocurrencies and blockchain is expanding in the UAE, as a large number of consumers, institutional investors, and wealth managers plan to increase their exposure to digital assets and crypto assets with online payments.
More than 1,000 cryptocurrency businesses are expected to be operational in Dubai by the end of 2022, which will boost the digital economy of the country. In addition, digital assets that are built on the secure blockchain database infrastructure are also increasingly interested by the investors due to their potentially high returns.
The UAE has introduced various measures to boost digital asset trading, such as:
- Several Free zones in Dubai and Abu Dhabi have established an advanced framework to encourage entrepreneurs in the crypto space to set up exchanges while setting outlaws to protect consumers.
- The Securities and Commodities Authority (SCA) has also entered a deal with the Dubai World Trade Centre Authority to support the trading of crypto assets in the emirates.
- The establishment of the DMCC Crypto Centre to promote cryptographic and blockchain technologies in Dubai, which is home to more than 100 organisations operating in the crypto space, with a further 900 more have applied for licences.
- The Crypto Expo Dubai was also hosted in Dubai to boost investor interest in crypto assets in the region.
Although several cryptocurrency exchanges have been granted permission to operate within the financial free zones, the UAE Central Bank does not license cryptocurrencies. The UAE dirham is the country’s only legal tender recognized by the Central Bank.