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UAE: An innovative ecosystem at the forefront of blockchain technology

As we know, the United Arab Emirates has a long history of attracting top financial talent, young tech entrepreneurs, and cutting-edge companies from around the world due to its emphasis on innovation-friendly regulations. 

This nation is also renowned for pioneering the adoption of advanced technologies to improve business efficiency and the quality of life for its citizens, including blockchain technology.

The UAE’s progressive approach to blockchain dates back to 2016, when Dubai, the country’s most populous city, launched its first blockchain strategy. Since then, UAE regulators have continued to dictate industry trends. 

In 2018, the Abu Dhabi Global Market (ADGM) introduced the world’s first regulatory framework for cryptocurrencies, aiming to establish futuristic regulations that promote innovation while protecting consumers, ensuring that the UAE is a driving force in the digital economy. 

In 2022, Dubai created its Virtual Asset Regulatory Authority (VARA) with similar goals. Later this year, the UAE passed additional regulations at the federal level, giving flexibility to local regulators such as VARA to regulate and develop economic free zones in order to attract crypto innovation. 

Regarding this, Akos Erzse, Senior Manager for Public Policy at BitOasis, a popular Dubai crypto trading platform, said the following: 

“VARA has brought new momentum for forward-thinking regulatory clarity in the region, which has attracted a large number of crypto players to the UAE. There are separate rules for staking, broker-dealers, advisory services, custodians, making it easier for companies to understand what the specific regulatory requirements are for providing certain services.”

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