Walid Benothman, Managing Director of crypto platform Bitpanda MENA believes the UAE is entering a new era that will see it become a leading global crypto hub.
Shedding light on the factors contributing to the country’s surge in cryptocurrency adoption, Benothman has cited the nation’s forward-thinking agenda as a key catalyst.
“Crypto has increasingly become a part of this journey, with the UAE recognising the enormous potential that it holds not only regionally but also globally. By initiating strategies to integrate crypto as a mainstay within its borders, the country is ushering in a new era to become a leading crypto hub worldwide,” he said.
Despite the global market’s fluctuating nature, revenue in the UAE’s crypto sector is expected to grow by 7.89% annually to reach $395.8 million by 2028, up from $292.1 million this year. With a 10% rate in the Middle East, crypto adoption is low but recent data indicates this trend won’t persist.
According to Bitget Research, the average daily number of crypto traders in the region exceeded 500,000 in February, reflecting a 51% YoY (Year-over-Year) growth from 2023. During this period, the UAE has elevated regional growth by leading crypto adoption per capita with a 68% YoY rise in daily traders.
Operating as one of Europe’s largest crypto platforms and infrastructure providers, Bitpanda, only recently entered the UAE as Bitpanda MENA. However, it has long kept its finger on the regional market pulse preceding this expansion. From the Dubai Blockchain Strategy to the Emirates Blockchain Strategy and most recently, the DMCC Crypto Centre, Benothman believes the nation’s pioneering efforts to embrace cryptocurrency is evident.
According to Benothman and Bitpanda, this is directly correlated to rising institutional adoption, as banks and financial services actively pursue ways to provide virtual asset services to their clients while also aligning with key priorities of the UAE.
Benothman added: “Since its inception over 50 years ago, the UAE’s aim to diversify away from oil has been clearly outlined – and for decades, this governmental-led effort has been reinforced by various mandates, across several industries, to ensure Sheikh Mohammed’s vision of future-proofing the nation is realised.”
