Dubai expects to see more than 1,000 cryptocurrency businesses in operation by 2022
With cryptocurrency markets soaring and the gold standard Bitcoin soaring towards a new all-time high, the blockchain ecosystem has never looked better. There are a growing number of investors and wealth managers planning to increase their exposure to crypto assets in the coming year.
Dubai wants to be a major part of the global integration of cryptocurrency and expects the city to host more than 1,000 cryptocurrency businesses. The pursuit of boosting the countries digital economy will see huge growth in the crypto space.
Dubai Building For the Future
Dubai and Abu Dhabi have implemented a system to encourage entrepreneurs in the crypto space to set up exchanges and other crypto-related businesses. The CEO of the Dubai Blockchain Centre recently pointed out the changes in the city “five years ago you wouldn’t see people coming to Dubai to do the cryptocurrency business.”
Throughout 2021 we’ve noticed the financial institutions and investors flocking to digital assets. A wealth of payment systems are in operation and under development, facilitating the everyday usage of cryptocurrency. Despite the progress, the UAE Central Bank still only recognizes the UAE dirham as legal tender.
Earlier this year, Dubai launched the DMCC Crypto Centre, which now houses more than 100 organizations operating in the crypto space. At present, there are some 400 crypto companies, with the aim to more than double that number within just over a year.
Speculation About The Dubai Market
The Emirates has a unique business environment, with a clear focus on driving the digital space forward. There are a lot of tech-savvy people in Dubai and the crypto industry is a magnet for young exciting talent. While many upcoming businesses are based in the U.S. and Europe, Dubai has the ability to offer lenient regulatory laws. As such, it’s beneficial for a crypto business to base its operations there.
The open-minded nature of Dubai allows for young minds to thrive. With businesses like MidChains, a virtual asset trading exchange, now trading in various major cryptocurrencies through a fully-regulated platform. There is likely to be a lot more growth in the space in the Middle East, which we will continue to monitor in the coming months.