Crypto landscape in UAE fastest growing in the world

The UAE and Middle East region has officially connected to the global Blockchain ecosystem in a way that expresses community and embodies excellence, experts said at a press conference by Crypto Oasis on Thursday.

The ecosystem in the UAE builds on the foundations set into motion back in 2016 by the Dubai Blockchain Strategy under the Dubai Future Foundation. Proponents of Crypto Valley in Switzerland, one of the world's leading Blockchain ecosystems, formed a collaboration with the Dubai Multi Commodities Center (DMCC) in January 2020 during the World Economic Forum in Davos. Following this, May 2021 saw the launch of the DMCC Crypto Centre.

Speaking to Khaleej Times, Ralf Glabischnig, founder of the Crypto Oasis, said: "I would describe the crypto landscape in the UAE and Middle East region as the fastest growing ecosystem worldwide. There is a huge opportunity which has accelerated during the pandemic. Over the past two years, everyone who had an interest in blockchain and crypto, came to Dubai to explore the landscape and ended up staying for the opportunities here.”

"We have decided to bring our Crypto Valley experience and expertise to the Middle East because we believe in the region's potential," he added. "We have witnessed how regulators in the region are welcoming innovation and disruption, making it simpler for Blockchain-related companies to secure licenses and operate."

As of March 2021, this fast-growing ecosystem, reached over 700 organisations operating out of the UAE.

Highlighting the growing interest that revolves around investing in cryptocurrencies, Glabischnig advised: “You should always be careful when investing in anything, not just crypto, and you should never invest in just one asset class. You need to divide your investments across a portfolio. I also think that there is still a big misunderstanding about how to store and protect your assets; not a lot of people know that around 20-25 per cent of bitcoins have been lost today due to poor management."

"As always, when you invest, never put in more than you can afford, and make sure that you have the right partners and financial advisors to guide you," he further cautioned.

Asked if challenges remained in the landscape, he identifies issues such as scams and risks of fraud. “When there is a lot of hype around something new, a lot of money goes into it, so you need regulations to protect investors and consumers. Just recently, we saw the creation of the Dubai Virtual Asset Regulatory Authority and I think that this is great step forward to be on the forefront of this worldwide movement. Also, the newly issued Virtual Asset Regulation Law will help investors be safe in this environment, which is getting bigger day by day.”

Lewis Allsopp, CEO of Allsopp & Allsopp, described the approval of the virtual assets law and the establishment of the Dubai Virtual Assets Regulatory Authority as a step ahead for Dubai.

"The city remains at the forefront of emerging technologies and aligns with how the world is developing," he said. "By creating an authority and infrastructure to measure and facilitate the growth of virtual assets, the UAE is keeping itself ahead of most of the world."

"In my opinion, this will have an impact on business start-ups, established businesses opening offices in Dubai, innovation, creation and so much more which proves again that Dubai's vision is set on the advancement for the future."

rohma@khaleejtimes.com