Panelists shared stories of the humble beginnings of the cryptocurrency in the UAE, when only “five or six” people in the country were doing anything related to Bitcoin
UAE is emerging as one of the world’s most dynamic hubs for digital assets, with industry experts suggesting it could become the future Wall Street of Bitcoin. Early adopters of the cryptocurrency said that the country’s clear rules, friendly business environment, and ability to attract global talent are helping it lead the next wave of financial innovation.
According to Dr Marwan Al Zarouni, CEO of the Dubai Blockchain Centre, UAE took its time to lay the building blocks of its cryptocurrency framework. “We started back in 2012 with education,” he said. “The regulators understood the value of the technology by the time we launched the Dubai blockchain strategy in 2016. After that, we started embracing crypto and really jumping headfirst into regulation and licensing.”
He explained that in 2018, the Dubai Multi Commodities Centre (DMCC) launched the country’s first license for over-the-counter (OTC) crypto trading, and he became the first person to receive it. Dr Marwan was speaking as part of a panel discussion on the past and future of the cryptocurrency adoption in the UAE at the Bitcoin MENA conference, which began in Abu Dhabi on Monday.
His comments came just hours after Binance, the world’s largest cryptocurrency exchange, received official approval from Abu Dhabi Global Market’s (ADGM) regulatory authority to operate its global platform.
Austin Alexander, partner of 10x capital and moderator of the panel, welcomed the move, pointing out that Binance was given the licence after just three and half years of submitting their application. “If the banking system continues to integrate with crypto companies, the UAE could become the most liquid market in the world for Bitcoin,” he said. “We could see the UAE becoming the Wall Street of the Bitcoin ecosystem.”
Dr Marwan agreed. “This is the capital of capital after all,” he noted. “Now it’s up to people whether they want to come here.”
Regulatory clarity
The speakers credited the UAE’s success to its unusually clear and competitive regulatory landscape. Unlike jurisdictions with a single regulator, the UAE offers multiple licensing options tailored to different types of digital asset businesses, including VARA in Dubai, ADGM in Abu Dhabi, and DMCC’s Crypto Centre.
Panelist Paul Dawalibi CEO of RAK-based Innovation City, the world’s first free zone fully powered by AI, said this approach makes the UAE especially attractive. “No matter what type of virtual asset service you provide, you can get licensed in one jurisdiction or another,” he said. “And regulators here focus on the activity, not on whether the asset is a security or a utility token.”
This clarity has drawn a wave of major global companies to establish regional or global headquarters in the UAE. Dr Marwan gave the example of Bitpanda, the European exchange, which recently received a broker licence and partnered with UAE banks to offer direct Bitcoin trading. Earlier this year, the Central Bank of UAE approved Zand Bank to launch the country’s first regulated, multi-chain UAE dirham-backed stablecoin on public blockchains.
Humble beginnings
During the discussion, Dr Marwan recalled how he was introduced to Bitcoin during his tenure as a forensic investigator for Dubai Police. Enamored by the technology, he began mining the cryptocurrency, often forgetting to even eat and sleep. “I started mining very aggressively, travelling wherever I had to travel and buying whatever I needed to buy,” he recalled. “I also reinvested that money in Bitcoin and making sure that I advocate for it locally and internationally.”
Austin recalled how he and Dr Marwan were “maybe five or six people” in the entire country doing anything with Bitcoin. “We were hosting small meetups and even convinced a pizza shop to accept Bitcoin,” he said, illustrating the humble beginnings of cryptocurrency in the UAE.
Paul shared a story of how he paid in Bitcoin to buy skins for his character in the online game Counter-Strike. “It isn’t the greatest investment story of all time,” he laughed. “The sheer dollar value of what I spent on Counter-Strike skins in today’s dollars would make anyone blush.”
Source: www.khaleejtimes.com