The Middle East is Set to Become the World’s Crypto Hub:
The Middle East is Set to Become the World’s Crypto Hub: Why, How and What Next
Crypto adoption has grown larger in the Middle East. For some Middle Easterners, it is a way to escape the economic downturn. For other investors, crypto offers a source of living. This increased crypto adoption has shown in the numbers. For example, there are over one million crypto owners in Iran. This number is much bigger in the UAE. There, about 33 percent of UAE residents are crypto investors. These numbers show that the crypto wave has continued to grow larger across the Middle East.
Due to this, many Middle Eastern governments have made moves to establish their countries as crypto-friendly territories. Countries like Bahrain and the UAE are taking the lead. Currently, many news outlets are referring to the Middle East as the next crypto hub. The reasons for this are quite simple.
Why the Middle East is the World’s Next Crypto Hub
First, some Middle Eastern countries have the most favourable crypto regulations in the world. Their national governments have put in extra efforts to ensure that their countries are seen as crypto-friendly. In 2019, the Central Bank of Bahrain released the crypto asset rules. These rules created a licensing process for crypto exchanges in the country. Also, Dubai recently released a law to regulate virtual assets like cryptocurrencies and issue licenses to exchanges. These laws send a favourable signal to companies and investors that the Middle East is ready to support the crypto ecosystem.
The region’s large crypto ecosystem is another reason for its growing influence as a crypto hub. For example, Binance recently announced its plans to make Dubai its regional headquarters. Also, Bybit has announced that it will move its headquarters from Singapore to Dubai. Due to the arrival of these companies, many Middle Eastern countries have started to build relations with the crypto community. Dubai currently has a yearly Crypto Expo. It is a conference for many crypto investors to share new ideas. In the last edition, over 130 crypto companies attended. This has also added to Dubai’s crypto investment attraction.
Possible Risks
While there is no doubt that the Middle East is rising through the ranks of crypto investment, there are still some factors that might slow down the region’s position as a crypto hub. First, crypto is banned in many Middle Eastern countries. Countries like Saudi Arabia, Turkey, and Qatar have banned the use of crypto. These positions are not progressive. For the most part, it could reduce the possibility of crypto adoption spreading across the Middle East.
There are also problems with infrastructure. Electricity is unstable in Middle Eastern countries like Lebanon. This lack of infrastructure could discourage the creation of a crypto ecosystem across the Middle Eastern region.
Conclusion
As the Middle East continues to gain attention from the international crypto community, it has become necessary for the region to remove the factors that may discourage investment. Investors are not only attracted by friendly laws, but also quality infrastructure. As such, national governments should focus on improving their countries in all areas.
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