How the United Arab Emirates Became One of the Global Crypto Hubs

Cryptocurrency’s Beginning

The start of cryptos is shrouded in mystery. In 2009, a person, entity, or group of programmers known only as Satoshi Nakamoto developed Bitcoin. No one knows the identity of the person or entity that created this digital coin, but there have been many conspiracies over the years. It’s a decentralised coin with a volatile nature whose value could change anytime.

It uses open-source blockchain technology to encourage transparency and security. Now, there are hundreds of cryptos, though none have yet reached the level of Bitcoin. On the 22nd of November, 2024, it reached a record-breaking value of one bitcoin being equal to 99,655.50 USD (365,984.82 AED).

Its Adoption into the UAE Economy

The United Arab Emirates is a rapidly growing country with many exceptional investment opportunities. Part of the reason its economy is growing so quickly is thanks to its many excellent economic decisions. 

The UAE has been at the forefront of accepting and embracing cryptos. Its forward-thinking nature has helped it make many strides in implementing many modern technologies and concepts into its economy.

UAE’s Legislation Timeline

Experts believe the UAE’s crypto market will be worth around 263.1m USD (966.2 AED) in 2024, with about 3.78m crypto users expected in the UAE by 2025. But how did it come to this point? The following timeline shows how UAE has moved to embrace cryptos in its market:

2018: 

• This year was where it all started for the country. Via the Financial Services Regulatory Authority, the Abu Dhabi Global Markets provided digital asset guidance when it introduced cryptocurrencies to its services and products.

2019: 

• Abu Dhabi took it a step further to make a friendlier environment for investors and centre house start-ups. It introduced the Hub71, a worldwide technology system.

2021: 

• The new dedicated court could now handle financial crime among cryptocurrencies set up in the country.

2022: 

• A penal code was enacted to help support AML (Anti-Money Laundering) regulations, and later, changes were made regarding digital assets related to FATF’s travel law. 
• The DIFC created VARA (Virtual Asset Regulatory Authority), an independent digital asset regulator. 
• VARA then introduced a full market product (FMP) regulatory regime, which granted virtual asset service providers licences and regulations.

2023:

• The UAE’s cabinet enacted the first federal laws regarding virtual assets to protect investors and regulate the industry.
• The Central Bank provided a guide on counter-terrorism financing and AML to help institutes that deal with virtual assets.
• The ADGM published regulations surrounding Distributed Ledger Technology to provide a framework for companies using it.

2024:

• The Digital Assets Law was put into motion, which helps investors gain clarity on digital assets.
• The UAE was removed from FATF’s grey list thanks to the improved financial regulatory framework. 
• The Dubai Court of First Instance implemented a law recognising cryptocurrency as a valid form of salary payment.

Most Popular Uses of Cryptos

It’s no surprise that crypto is becoming more popular, as its uses globally are increasing. Where you once could only invest in it and trade different cryptos, it now has a host of other uses:

•   Online Casinos
Crypto casinos that allow Bitcoin betting (مراهناتالبيتكوين) are becoming more popular and widely available. These casino sites allow players to use many different cryptos to make deposits, wager on games, and withdraw winnings in these digital currencies. However, be aware that the UAE outlaws all forms of gambling, so you won’t find any legal and UAE-regulated online casinos.

•   Travel
You can travel using only cryptos, as many travel agencies and hotels now accept them as a valid form of currency. In the UAE, LucidPay is setting an example for other hospitality businesses by using blockchain technology to enhance clients' experiences.

•   Eat Out
Many restaurants, especially ones in Dubai, now accept cryptos as a valid form of payment when you want to eat out. Antika, B018, Bake N More, and Bhukkad Café are just a few of the places you’ll find that allow you to pay with your Bitcoin, Ethereum, and Litecoin. Bhukkad Café goes even a step further and hosts free sessions and guest lectures on cryptos and investing in them.

•   Paying for Services and Products
You can pay for some services and products with Bitcoin and other cryptos. In the UAE, real estate is a growing investment, and some companies, like fäm Properties, allow you to buy real estate using Bitcoin. Some hospitals and government agencies have even started supporting crypto payments.

Stepping into the Age of Digital Currency

You might feel like cryptocurrencies don’t have anything to do with you, but the world is changing. More and more sectors are realising the value of a decentralised digital currency and supporting it. It’s time to decide if you’re going to enter the new age or watch it pass by without you.