Recently, the cryptocurrency market has been experiencing a stark contrast; on one hand, Bitcoin has retraced over 30% from its historical high, while on the other hand, the UAE is bustling with various cryptocurrency conferences, gathering top institutions and industry veterans.
It is hard to imagine that this region, which "started" with oil, has now become a new hotbed for the cryptocurrency industry. What exactly attracts major institutions to gather here and even establish headquarters?
Looking back to 2024, the UAE incorporated the cryptocurrency industry into its "2031 National Investment Strategy" and launched the "Tokenized Regulatory Sandbox Guidelines" in 2025, forming a layered regulatory model that coordinates federal and local efforts.
Currently, the Dubai Virtual Assets Regulatory Authority (VARA) has issued licenses to 36 companies, and the Abu Dhabi Global Market has explicitly classified cryptocurrency assets as regulated financial products, thoroughly addressing the industry's "regulatory uncertainty" pain point, which stands in stark contrast to the regulatory deadlock in some regions.
It is precisely the improvement in regulation that has attracted numerous institutions to settle here. For instance, the leading exchange OKX became the first global exchange in the UAE to obtain a license to offer such products to retail users a year ago and has established a branch, with the local team now exceeding 100 people.
OKX CEO Star has publicly stated, "Dubai has now become a core pillar of our long-term global strategy," which perhaps represents the sentiments of many cryptocurrency institutions rooted in the UAE.
In addition to regulatory support, the UAE, as an "oil tycoon," is not short of buying initiatives.
In March of this year, Abu Dhabi's MGX company invested $2 billion in Binance, setting a record for a single investment in the cryptocurrency industry.
The Abu Dhabi sovereign wealth fund Mubadala has doubled its Bitcoin holdings this year, with its ETF holdings exceeding $1 billion, while the Abu Dhabi Investment Authority also holds over $500 million in Bitcoin ETFs.
At the same time, policy benefits have created a "startup haven." In terms of taxation, there is zero tax on personal cryptocurrency gains, and free zone companies enjoy up to 50 years of tax exemption; regarding talent, an investment of 2 million dirhams in cryptocurrency gains or for top blockchain talent can directly lead to a golden visa.
Abu Dhabi also offers free office space and simplifies registration processes, allowing companies to cover all operations with a comprehensive license, significantly improving operational efficiency.
Data from 2025 shows that the number of registered blockchain companies in Dubai surged by 300% compared to the previous year, highlighting the attractiveness of its policies.
Notably, a new law in the UAE recently officially placed the digital dirham on par with physical cash in terms of legal status, confirming its ability to serve as "legal tender for paying any fees," which will resonate with the cryptocurrency ecosystem.
The digital dirham not only provides a compliant channel for cross-border settlements but can also interact with stablecoins and tokenized assets, strengthening the Middle East's voice in global digital finance.
It is hard to imagine that the UAE, based on the traditional industry of oil, is now re-engaging with the wave of the digital economy through cryptocurrency assets. There is an old saying on Wall Street: "Money is the smartest; it will actively flow to places with opportunities." Perhaps the UAE is practically showing us the way forward.
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