Cryptocurrencies are becoming increasingly popular worldwide. This is mostly due to the surging prices of numerous cryptocurrencies in recent years. With a seemingly unstoppable momentum, the crypto boom has also spread to the Middle East.
For example, experts are entertaining the fact that the United Arab Emirates may just be a serious contender for becoming the world’s cryptocurrency hub. But while the spotlight is focused on the UAE at the moment, other countries in the Middle East are also adopting cryptocurrencies at a fevered pace.
Before searching for cheap flights to the region, let’s learn more about the 3 things that prove the Middle East is the next major region coveted by key players of the cryptocurrency ecosystem.
Dubai boasts first Bitcoin spot ETP in the Middle East
The cryptocurrency investment products company 21.co has launched a BTC product listed on Nasdaq Dubai through its subsidiary 21Shares AG, making it the first physically backed bitcoin ETP in the Middle East.
In a time where the United States through the SEC is still exercising caution towards authorizing stock market products backed by ‘physical’ bitcoin, 21Shares’ foray into the UAE and the broader Middle East is nothing short of groundbreaking. The Middle East is currently in pole position in terms of the pace of its crypto adoption.
Specifically concerning the UAE, the country has spared no efforts to provide crypto-friendly regulations and legal certainty which inevitably attracts key players. Dubai in particular has high ambitions to further develop its digital economy. The recently launched Dubai Metaverse Strategy is predicted to attract more than 1,000 blockchain and metaverse companies.
Bahrain Central Bank testing the waters
The Central Bank of Bahrain recently announced a partnership with the US-based provider of bitcoin infrastructure, OpenNode, to test a solution for payment and processing of bitcoin within a regulatory sandbox. The partnership will allow FinTech firms to come up with innovations and ideas concerning cryptocurrency solutions and applications in Bahrain.
Additionally, the Central Bank of Bahrain recently granted a Category 4 license as a crypto-asset service provider to Binance Bahrain. The Category 4 license enables Binance Bahrain to provide a full range of crypto-asset exchange services. Bahrain thus became the first country in the Middle East where the crypto-asset service provider has received the green light.
Saudis in crypto frenzy
While it has been established that institutions and companies in the Middle East have contributed to the rise of crypto in the region, what about the individuals? What about the people? Well, it turns out that we shouldn’t underestimate the allure of cryptos on individuals, specifically in Saudi Arabia.
As per the survey conducted by KuCoin, it seems there are at least 3 million crypto users in Saudi Arabia, 37% of whom are women. This translates to roughly 14% of Saudi Arabia’s population.
As a result, the survey concluded that the absolute monarchy ranks in third place among Middle Eastern countries in terms of the growth of its crypto market. The United Arab Emirates, in comparison, ranks in the fifth position.