Cryptocurrency adoption in the Middle East is higher than it's ever been and regulatory frameworks to support crypto-related financial services is growing.
The UAE is looking like a likely contender to be a global hub for cryptocurrency as adoption of digital currencies skyrockets in the Middle East.
The crypto space in the region is growing while regulatory policy is being developed as demand for crypto-related financial services grows.
“Cryptocurrency adoption in the Middle East is higher than it’s ever been. On the BitOasis platform, we’ve seen transaction volumes exceed $3 billion in the first half of 2021. User signups have also soared, effectively doubling our platform’s user base in the last six months,” said Srinu Chowhan, vice president of marketing and growth, BitOasis.
The sector has grown during the pandemic.
“Prices declined nearly 50 percent between April and July, yet more than $2 billion of investment was allocated to the sector in August. Underneath all of that, technical and financial innovation is flourishing. The world is realising what many of us have known for a while: Virtual assets are here to stay,” said Terry Culver, CEO Matrix.
While the region prepares to deliver on this largely unmet demand, there are also significant inroads being made on the regulatory framework to ensure that transparency and trust form the foundation for the long-term growth.
“With growth comes regulation. It is a necessary stage of development for the sector, and the recent and ongoing regulatory changes are significant. For example, the policies in the US regarding tokens as securities or in China regarding mining have had an immediate impact, and the sector is adapting quickly. This is one reason we choose to launch Matrix in ADGM. The ADGM (Abu Dhabi Global Market) virtual asset policy framework is thoughtful and clear, and sets a high standard. It enables us to build our business with confidence that we are protecting our customers,” Culver said.
The sector experts spoke ahead of the AIM Summit, where Arabian Business’s editor-in-chief Scott Armstrong will be moderating sessions.
Launched in 2015, AIM Summit is a platform for discussions on investment developments, global market conditions and latest trends. AIM Summit acts as a bridge between the West and East through its global network base. It has created an ecosystem of 135,000 fund managers, institutional investors, family offices, sovereign wealth funds and financial associations.
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