A paradigm shift is being witnessed in Middle East, especially the United Arab Emirates (UAE), because the region’s interests are changing from oil to crypto and metaverse, among other blockchain innovations.
Having set its eyes on becoming a blockchain capital, the UAE is setting the ball rolling by establishing a legal framework to aid the operation of crypto-based and blockchain companies.
Raj Chowdhury, the CEO of blockchain development company HashCash Consultants, welcomed the Middle East’s quest to propel blockchain-based business options. He stated:
“One of the biggest market disruptors in modern-day innovations, blockchain technology will soon become omnipresent owing to its wide scope of applications. Market forecasts indicate similarly, and the rising demand for blockchain solutions will soon transform into a necessity.”
As early as 2018, the Middle East had already set up a regulatory body called the Securities and Commodities Authority (SCA) as it had seen the potential of the crypto sector.
This move has been instrumental in establishing multiple free zones across the UAE in places like Abu Dhabi and Dubai. For instance, crypto companies got the green light to set up business in the Dubai Multi-Commodities Centre (DMCC) free zone last year.
The Dubai economy also got supported by the UAE KYC (Know-Your-Customer) blockchain platform, prompting instant bank accounting functionality, secure digital customer onboarding, and sharing verified data between financial institutions and licensing authorities possible in 2020.
Therefore, Chowdhury believes that the UAE is attracting global attention as a hub for blockchain innovation.
The Middle East has also shown interest in the cryptocurrency market, given that the first Bitcoin fund in the region was listed in Nasdaq Dubai in June 2021.
While crypto has gradually penetrated the Middle East, the high degree of volatility in the cryptocurrency market has also drawn the attention of investors and relevant authorities.
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