Crypto transactions in MENA region rise to $338.7 billion: United Arab Emirates fast-growing crypto hub

The Middle East and North Africa (MENA) region recorded an impressive cryptocurrency transaction volume of $338.7 billion between July 2023 and June 2024, according to a report from Chainalysis. This represents 7.5% of global crypto traffic, with institutional and professional investors predominating.

About 93% of transactions in the MENA region were worth $10,000 or more, underscoring the small role of retail investors. The latter group accounted for only 1.8% of the total transaction volume. Centralized exchanges played an important role in facilitating transactions, while countries such as the United Arab Emirates (UAE) and Saudi Arabia are showing increasing interest in decentralized platforms.

United Arab Emirates on its way to becoming a leading crypto hub

The UAE is fast becoming a global crypto hub, driven by clear regulations and a forward-looking attitude towards digital assets. In a landmark ruling in August 2024, the Court of First Instance in Dubai ruled that cryptocurrencies can be used as valid payment for employment contracts. This follows a case where an employee was supposed to receive EcoWatt tokens as a salary, but did not receive the tokens and therefore took the matter to court.

This ruling marks a major step forward, as previous decisions in 2023 were still cautious regarding crypto payments in legal matters.

UAE takes new steps in crypto regulation

In September 2024, the UAE made its mark again by allowing virtual asset service providers licensed in Dubai to offer services across the country. According to the Chairman of Dubai’s Virtual Assets Regulatory Authority (VARA), this partnership with the Securities and Commodities Authority (SCA) streamlines the regulatory process while better protecting investors from fraud and other risks.

The UAE Central Bank also took measures to secure the sector. A new custody insurance product should protect both financial institutions and their customers against losses due to hacks, internal fraud and infrastructure damage. These developments strengthen the UAE’s position as a leader in cryptocurrency and digital innovation.