Today, the Middle East has become the fastest-growing cryptocurrency market on global parameters. United Arab Emirates has made approximately US$25 billion in transactions in the global market. This increase in the cryptocurrency is because of the United Arab Emirates’s market share. As per the reports of CNBC, the Middle East has a share of at least 7% to 8% of global trading volumes.
Main highlights related to the Cryptocurrency boom
One of the important highlights that one needs to know is that the UAE has the third position by transaction volume. in Turkey and Lebanon, the increase in crypto adoption is due to value preservation. But, the increase in the UAE’s transactions is because of several other growth factors.
- The transaction of cryptocurrency in UAE is so huge. Currently, more than 400 crypto businesses are operating in the UAE, making the transactions large.
- According to the experts and the CEO of Dubai Blockchain Centre, this number of crypto businesses is estimated to be above 1,000 in the coming years. A report also stated that more than 30 licenses were issued for crypto exchanges to be operational in Dubai and Abu Dhabi.
- Kraken has got license to operate in Abu Dhabi’s free trade zone. The main aim of the company is to be the first cryptocurrency exchange that provides direct funding and trading in UAE Dirhams against major cryptocurrencies.
Also Read: What is the exact definition of NFTs, and how does it work?
The dominance of the Digital Economy in the UAE
Now, let’s talk about how the digital economy of the UAE is becoming dominant. The report and news say that the UAE is going to witness a new era of growth because of the digital economy. For this, many strategic initiatives are being proposed. These initiatives can elevate the digital economy as well as the UAE’s GDP. The GDP is expected to grow to reach 19.4% by 2030.
The country’s digital transformation is growing because of the latest technologies such as blockchain, artificial intelligence, Metaverse, and so on. Dubai is one of the first countries that is at the forefront of this cryptocurrency revolution. Today, the UAE is considered the hub of the digital companies. This has been made possible because of the implementation of new laws regulating data usage.Today, we can see Dubai as a top smart country and is going to be the next biggest Silicon Valley. High internet, high internet, and smart city solutions are some of the support systems that are making Dubai a digital revolution county for future finance establishments. In addition to this, it has a supportive government that promotes competitiveness.
Many other factors are there that are contributing to the fact that Dubai is shaping the future of finance. In addition to this, long-term residency visas are one of the crucial initiatives that are specially designed for investors and entrepreneurs. Along with this, there are remote working visas which are again strengthening Dubai’s various companies, startups, and digital economy companies.
In 2021, the Dubai Chamber of Digital Economy was set up to make Dubai a digital economy in the world. Since then, it has worked effectively to attract various companies, enterprises, specialized minds & and talents to Dubai.
Also Read: The Future is Now: Digital Marketing Trends of 2024
How does the government Support the cryptocurrency revolution?
The UAE is witnessing the boom of cryptocurrency because of the support of its government. To provide its support, Dubai Multi Commodities Centre started a crypto center so that companies can get support and assistance. Those companies that are engrossed in developing various crypto and blockchain technologies get full support from the government. The effect of crypto investments can be seen in the private wealth in the UAE.
Conclusion
The UAE’s cryptocurrency is experiencing a positive increase. This increase is due to government support, private wealth, and a stern entrepreneurial ecosystem. This is the reason that the digital economy has continued to take center stage in Dubai. So, all these developments contribute to the use of centralized cryptocurrency exchanges for businesses.
FAQs
Is Dubai tax-free for crypto?
Yes, that’s true. Dubai has no tax of any kind on cryptocurrency for individual investors. So, Dubai is tax-free for crypto.
Is Dubai known as the crypto capital of the world?
As per the reports of CNBC, Dubai is becoming the crypto capital of the world. This is because two more crypto companies have set up their offices in Dubai.
Is Dubai good for crypto?
In the Middle East, Dubai is known as the most crypto-ready city. According to a report for 2023, Dubai is the second crypto-ready city in the world.
What is the revolution of cryptocurrency?
It is a financial revolution that has now transformed into a global phenomenon. Crypto is changing the way people use and think about money and finance.
