Dubai and Abu Dhabi have been rated at the top in regulatory structure, making up 35% of the total score on an assessment of cities for their suitability for cryptocurrency innovation. However, the UAE’s low crypto adoption score reveals that its residents are not as crypto-savvy as those in these two hubs. Despite this, Dubai secured its place among the top five cities, thanks to its high scores in the per-capita crypto opportunities category, which measured events, companies and jobs related to cryptocurrencies. Additionally, Dubai scored the second-highest in quality of life, making up 15% of the total score.
It seems that Dubai’s master plan to join the ranks of New York, London, and Hong Kong as a global financial center is working. Major crypto players, such as Binance co-founders Changpeng “CZ” Zhao and He Yi, have made Dubai their home, while Coinbase’s Brian Armstrong and Wazirx, one of India’s largest exchanges, have met with the city’s regulators.
Dubai’s growth as a business and financial services hub in the Middle East is a result of its deliberate approach to embracing innovation. In 2014, Dubai’s government collaborated with IBM to explore new technologies. This eventually led to the establishment of the world’s first independent crypto regulator, the Virtual Asset Regulatory Authority (VARA), in 2022.
As the US Securities and Exchange Commission (SEC) responds to the crypto industry’s demands for clearer regulation with lawsuits, the UAE has emerged as an alternative destination. With a diverse population of over 3.2 million non-Emirati residents, blockchain technology finds various use cases in the city – from facilitating remittances to enabling capital flight for those seeking refuge from unstable economies.
In addition to its friendly regulatory environment, Dubai and the UAE stand out as a crypto hub by offering a home for various use cases. Following the establishment of VARA, the government announced plans to create “one of the world’s top 10 metaverse economies” by attracting 1,000 blockchain and metaverse companies and creating 40,000 virtual jobs by 2030.
Geographically, Dubai’s proximity to Africa, Asia, and Europe makes it an ideal location for global networking and collaboration. The city routinely hosts numerous crypto events such as Binance Blockchain Week, Dubai Fintech Week, and GITEX – a leading tech conference with 170,000 attendees in 2022.
Moreover, the UAE’s talent pool is another driving factor for its success as a crypto hub. Former IBM consultant and Crypto Oasis co-founder Saqr Ereiqat claims that “within three hours, you have access to three billion people.”
Despite its strong regulatory framework and growth opportunities, it remains to be seen whether Dubai can overcome its low crypto adoption rate and fully harness the potential of cryptocurrency innovation.
Source: Coindesk
