jakiro
The recent crypto market has been in a state of ice and fire. On one side, Bitcoin has retraced over 30% from its all-time high. On the other side, the UAE is bustling with various crypto conferences, bringing together top institutions and industry veterans.
It’s hard to imagine that this region, which “started” with oil, has now become a new hotspot for the crypto industry. Why on earth would it attract major leading institutions to gather here or even set up headquarters?
Time goes back to 2024,The UAE has included the encryption industry in the “2031 National Investment Strategy” and launched the “Tokenization Regulatory Sandbox Guide” in 2025, forming a hierarchical regulatory model with federal and local collaboration.
At present, the Dubai Virtual Asset Regulatory Authority (VARA) has issued licenses to 36 companies, and the Abu Dhabi Global Market has clarified crypto assets as a regulated financial category., completely solving the pain point of “regulatory uncertainty” in the industry, which is in sharp contrast to the regulatory deadlock in some regions.
It is the improvement of supervision that has attracted many institutions to settle in. For example, the leading exchange OKX became the first global exchange in the UAE to be licensed to provide such products to retail users a year ago, and established a branch. The current local team size has exceeded 100 people.
OKX CEO Star even publicly stated that “Dubai has now become a core pillar of our long-term global strategy.” Perhaps this represents the voice of many crypto institutions rooted in the UAE.
In addition to regulatory support, the UAE, as an “oil tycoon”, is indispensable for buying and selling measures.
In March this year, Abu Dhabi’s MGX invested US$2 billion in Binance, setting a single investment record in the encryption industry.
Abu Dhabi’s sovereign wealth fund Mubadala has tripled its Bitcoin holdings this year, with its ETF holdings totaling more than $1 billion, while the Abu Dhabi Investment Committee also holds more than $500 million in Bitcoin ETFs.
At the same time, policy dividends have created an “entrepreneurial depression.”In terms of taxation, there is zero tax on personal encryption income, and free zone companies enjoy tax exemptions for up to 50 years; in terms of talent, if you invest 2 million dirhams in encryption income or become a top blockchain talent, you can directly obtain a golden visa.
Abu Dhabi also provides free office space and simplifies the registration process. Enterprises can cover all businesses with a comprehensive license, greatly improving operational efficiency.
Data in 2025 shows thatThe number of blockchain company registrations in Dubai surged 300% compared to the previous year, the policy’s attractiveness is evident.
It is worth noting that a new law in the United Arab Emirates recently officially placed the digital dirham on the same legal status as physical cash, confirming that it can be used as “legal currency for payment of any fees”, which will resonate with the crypto ecosystem.
The digital dirham not only provides a compliant channel for cross-border settlement, but can also be linked with stable coins and tokenized assets to strengthen the Middle East’s voice in global digital finance.
It is hard to imagine that the United Arab Emirates, which is based on the traditional industry of oil, is now reconnecting to the digital economy by relying on encrypted assets. There is an old saying on Wall Street, “Money is the smartest, it will actively flow to where there are opportunities.” Perhaps the United Arab Emirates has told us the direction.
