The Middle East and North Africa (MENA) region has witnessed a significant surge in cryptocurrency activity, accounting for 7.5% of global transaction volume between July 2023 and June 2024. This growth is primarily driven by institutional and professional investors, who account for a substantial portion of the region’s crypto transactions.
The report by Chainalysis reveals that 93% of transactions in the MENA region were for $10,000 or more, indicating a strong preference for larger-scale investments. Retail investors, on the other hand, accounted for only 1.8% of the total transaction volume.
While centralized exchanges remain the primary channel for crypto transactions in the MENA region, there is growing interest in decentralized platforms. The United Arab Emirates (UAE) and Saudi Arabia have shown particular enthusiasm for embracing decentralized technologies.
The UAE has emerged as a global crypto hub, largely due to its clear regulatory framework and supportive stance towards digital assets. The Dubai Court of First Instance’s ruling recognizing cryptocurrencies as valid payments for employment contracts is a significant milestone in the region’s crypto adoption journey.
The UAE’s Virtual Assets Regulatory Authority (VARA) has been actively working to create a conducive environment for crypto businesses. The recent partnership with the Securities and Commodities Authority (SCA) streamlines the regulatory process and provides greater investor protection.
The Central Bank of the UAE has further strengthened the country’s crypto ecosystem by approving a custodial insurance product. This product will protect financial institutions and their clients from losses due to hacks, internal fraud, or damage to storage infrastructure.
The Middle East and North Africa region is rapidly becoming a significant player in the global cryptocurrency market. The region’s favorable regulatory environment, coupled with growing institutional interest, is driving the adoption and growth of digital assets. As the cryptocurrency industry continues to evolve, the MENA region is well-positioned to play a leading role.
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Author: Sb
