Crypto firms will flock to Dubai as UAE crypto regulation guides crypto sector rather than curbs it, according to data analyst firm GlobalData.
The UAE’s regulation is more about overseeing the development of the crypto sector than curbing it. By accepting the inevitability of mainstream crypto assets and helping the domestic crypto sector grow, the UAE will continue to attract a flock of crypto firms. The country is showing that crypto regulation doesn’t have to be a deterrent, and can actually reassure private firms and investors, Amrit Dhami, analyst at GlobalData, said.
She said regulating crypto supports the UAE’s growing reputation of having a diverse investment landscape and being at the forefront of financial innovation. Lawmakers across the world, including the UK, are starting to navigate cryptocurrency regulation. The UAE is beginning with a light-touch approach that will attract crypto firms and boost the sector, she added.
According to her, this compares with Singapore, a rival crypto hub, which is limiting crypto advertisements due to the volatility of crypto assets. No wonder, Bybit, a crypto exchange previously based in Singapore, very recently relocated to Dubai.
Amrit Dhami says such herd mentality might be fuelling the growth of this crypto hub, with the relocation of crypto platforms to Dubai. Dubai’s new Virtual Asset Regulatory Authority (VARA) has already granted licenses to Binance and FTX Europe, prominent players within the sector.
Also published on Medium.