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<p>Anastasia Ulianova, founder and CEO of crypto ratings agency ARIA tells Magazine the UAEs most populous city Dubai has developed the Goldilocks zone for crypto rules.</p>
<p>Better than anyone else, they are finding the sweet spot for increased regulation without stifling innovation, like weve seen in many other places, she says.<br><br>Crypto leaders such as Changpeng Zhao call Dubai home, and more than 65% of UAE residents hold cryptocurrency according to some surveys.</p>
<p>The numbers on the ground are surging. Capital city Abu Dhabis financial free zone ADGM reported a <a href="https://economymiddleeast.com/news/adgm-reports-33-percent-aum-growth-in-q1-2025-highlighting-strong-market-confidence/" rel="noopener noreferrer nofollow">67%</a> increase in new licenses in Q1 2025 compared with Q1 2024. More than 1,800 crypto companies are now based in the UAE, employing more than 8,600 people.&nbsp;</p>
<p>Dubais <a href="https://dmcc.ae/" rel="noopener noreferrer nofollow">DMCC Free Zone</a> alone hosts more than 600 Web3 companies, and DIFC, the Middle Easts answer to Londons Canary Wharf, is onboarding crypto projects at a growing rate.</p>
<p>Big names are setting up shop. BlackRock, <a href="https://cointelegraph.com/news/circle-abu-dhabi-adgm-approval-middle-east-expansion" rel="noopener noreferrer nofollow">Circle</a>, Coinbase, <a href="https://cointelegraph.com/news/crypto-com-standard-chartered-global-fiat-services" rel="noopener noreferrer nofollow">Crypto.com</a>, Rain, Zodia and Bybit are all either expanding or relocating to the Emirates, and Ripple recently launched <a href="https://cointelegraph.com/news/ripple-launches-cross-border-blockchain-payments-uae" rel="noopener noreferrer nofollow">blockchain cross-border payments there</a>.</p>
<p>And its not just exchanges: tokenization projects, Web3 startups, DeFi platforms and infrastructure providers are arriving, drawn by capital and a pro-tech government.<br><br>How does a small federation of desert emirates states with a population smaller than New Yorks end up competing and, in some cases, outpacing traditional powerhouses such as the US, UK and Switzerland?</p>
<p>The answer comes down to three things: clarity, capital and conviction.</p>
<p>Dubai is the Mecca for crypto, says Kumardev Chatterjee, founder of the Global Crypto Forum.</p>
<figure class="wp-block-image aligncenter size-full"><img src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2026/01/Dubais-17%E2%80%91storey-Crypto-Tower-in-Jumeirah-Lakes-Towers.jpg" alt="Crypto Tower">
 <figcaption><em>Dubais 17story “Crypto Tower” in development at Jumeirah Lakes Towers. (<a href="https://dmcc.ae/" rel="noopener noreferrer nofollow">DMCC</a>)</em>
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<h2 class="wp-block-heading" id="abu-dhabi-the-crypto-regulation-early-bird">Abu Dhabi, the crypto regulation early bird</h2>
<p>Back in 2018, when most regulators were still arguing over whether Bitcoin and Ethereum were securities, the ADGM dropped one of the worlds first comprehensive digital asset frameworks.</p>
<p>It covered everything from exchange licensing to tokenized assets to crypto custody under the Financial Services Regulatory Authority (FSRA). That clarity opened the crypto floodgates.</p>
<p>Having been a resident of Abu Dhabi for more than 17 years, Ive seen firsthand how the UAE has transformed itself into a world-class crypto hub, says Rachel Pether, head of MENA at digital asset investment manager 3iQ.<br><br>Its been successful from a top-down perspective via clear regulation from the FSRA and government funding initiatives, but also bottom-up with crypto companies setting up in Abu Dhabi.</p>
<figure class="wp-block-image aligncenter size-full"><img width="690" height="486" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2026/01/Dubais-skyline-including-the-Burj-Khalifa-tower.jpg" alt="Dubai">
 <figcaption><em>Dubais skyline, including the Burj Khalifa tower (Shutterstock)</em>
 </figcaption>
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<h2 class="wp-block-heading" id="dubai-joins-crypto-game-soon-after">Dubai joins crypto game soon after</h2>
<p>Not to be outdone, rival emirate Dubai both are in the UAE, which is a collection of seven emirates launched its own game-changing Virtual Asset Regulatory Authority (VARA) in 2022, giving it the power to license and oversee the entire crypto value chain.&nbsp;</p>
<p>Dubais Law No. 4 formally legalized VARAs mandate, giving the crypto sector an actual legal home, not just regulatory tolerance.</p>
<p>While most jurisdictions suffer from agency turf wars, the UAE did something rare: it was coordinated.&nbsp;</p>
<p>Abu Dhabi and Dubais regulators talk to each other. Add to that a federal layer now working on unified crypto rules, and you have a rare trifecta: legal clarity at the local, emirate and national level.&nbsp;</p>
<h2 class="wp-block-heading" id="capital-that-actually-shows-up">Capital that actually shows up</h2>
<p>Regulatory clarity is one thing, but crypto doesnt grow in a vacuum. You need capital, infrastructure and institutional will. The UAE has all three.</p>
<p>Abu Dhabis sovereign wealth fund, Mubadala, is worth around $330 billion. Its tech-forward arm, MGX, has been making big plays in crypto and blockchain infrastructure for years.</p>
<p>In March 2025, MGX shocked the industry by <a href="https://cointelegraph.com/news/abu-dhabi-mgx-backs-binance-2-billion-stablecoin-investment" rel="noopener noreferrer nofollow">dropping $2 billion into Binance</a>, less than two years after most governments were trying to push the exchange out. It was a powerful signal that the UAE wasnt just crypto-friendly but in it for the long haul.</p>
<p>Abu Dhabi has cultivated a fertile ground for the crypto industry, says Alex Chehade, who previously led the team to acquire Binance FZEs VASP License from Dubais VARA.</p>
<figure class="wp-block-image aligncenter size-full is-resized"><img width="592" height="368" src="https://s3.magazine.cointelegraph.com/magazine/wp-content/uploads/2026/01/CZ-meets-the-Dubai-Police-Virtual-Assets-team.jpg" alt="Here’s why crypto is moving to Dubai and Abu Dhabi">
 <figcaption><em>CZ meets the Dubai Police Virtual Assets team, (Binance/<a href="https://tynmagazine.com/binance-bolsters-middle-east-presence-with-dubai-licence/" rel="noopener noreferrer nofollow">TyN</a>)</em>
 </figcaption>
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<p>Anchored by the progressive regulatory framework of the ADGM and complemented by its reputation as a safe, highly livable city offering ease of scalability and workforce development, Abu Dhabi is a preeminent global crypto hub, he adds.</p>
<h2 class="wp-block-heading" id="uae-far-from-a-wait-and-see-jurisdiction">UAE far from a wait-and-see jurisdiction</h2>
<p>The UAEs crypto push isnt just about speculative finance. Its part of a broader national vision for digital leadership.</p>
<p>Blockchain has been part of the <a href="https://www3.weforum.org/docs/WEF_Inclusive_Deployment_of_Blockchain_Case_Studies_and_Learnings_from_the_United_Emirates.pdf" rel="noopener noreferrer nofollow">UAE governments strategy</a> since at least 2016. Dubais Blockchain Strategy aimed to move all government records to the blockchain. The Emirates Blockchain Strategy followed, and now a full AI + Blockchain integration roadmap is underway via the AI 2031 initiative.</p>
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<p>The Ministry of AI, the Dubai Future Foundation and the Emirates Development Bank are backing projects that cut across logistics, identity, land registries and payments.</p>
<p>As Cointelegraph <a href="https://cointelegraph.com/news/trump-crypto-czar-sacks-talk-uae-senior-official-on-crypto-ai" rel="noopener noreferrer nofollow">reported in March</a>, the White Houses crypto and AI czar, David Sacks, and other Trump administration officials met with UAE officials in Washington to discuss UAEs potential plans to increase its investment in the United States.</p>
<p>This puts crypto in a unique position. Its not depicted or treated as a disruptive sideshow; its a core layer of infrastructure being actively adopted and developed by the state.If I had to phrase it in one sentence, Id say that what makes Dubai a very interesting crypto hub is that it is not like many other wait-and-see jurisdictions, Anastasia Ulianova, founder and CEO of crypto ratings agency ARIA tells Magazine.</p>
<h2 class="wp-block-heading" id="then-theres-the-big-names">Then theres the big names</h2>
<p>Chatterjee, founder of the Global Crypto Forum, classifies Dubai as a global crypto hot spot.</p>
<p>Added to that, the worlds first real estate tokenized title deed and impending launch of the worlds only Royal Token backed by sovereign assets, then Dubai stands out as a shining city on the crypto hill, Chatterjee adds.</p>
<p>Theres also TOKEN2049 and events such as GITEX Global and the Future Blockchain Summit, which anchor the networking and deal-making side of things. Last years futuristic XPANSE conference in Abu Dhabi went into technology generally, but with blockchain at its core.</p>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube">
 <div class="wp-block-embed__wrapper"><iframe title="Asking Dubai Crypto Tycoons How They Got Rich" src="https://www.youtube.com/embed/d7tL4gxoWFw?feature=oembed&amp;enablejsapi=1&amp;origin=https://cointelegraph.com" sandbox="allow-scripts allow-same-origin allow-popups allow-forms"></iframe>
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<p>Throw in long-term visas for tech workers, global founders and the fact that developers and talent are moving in, and there are all the ingredients for a global tech hub that, as mentioned earlier, is more than a trifecta.</p>
<h2 class="wp-block-heading" id="singapore-slow-swiss-crypto-valley-narrow">Singapore slow, Swiss Crypto Valley narrow</h2>
<p>Its not that other countries arent trying.</p>
<p>Singapore has been seen as the crown jewel of Asian crypto, and its still a strong contender. But in <a href="https://cointelegraph.com/news/what-happened-terra-debacle-exposes-flaws-plaguing-the-crypto-industry" rel="noopener noreferrer nofollow">the wake of the Terra</a> and <a href="https://cointelegraph.com/news/ftx-collapse-the-crypto-industry-s-lehman-brothers-moment#:~:text=Eric%20Chen%2C%20CEO%20and%20co,liabilities%20far%20exceeded%20their%20assets." rel="noopener noreferrer nofollow">FTX collapses</a>, Singapores Monetary Authority has become more conservative and clamped down on licensing. It still offers regulatory clarity, but with growing limits and longer timelines.&nbsp;</p>
<p>Many founders say its safe, but slow.</p>
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<p>And Switzerlands Crypto Valley in Zug may thrive, but with a dense population of <a href="https://www.entrepreneur.com/en-gb/money-finance/switzerlands-crypto-valley-presents-real-opportunities/316125?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">123,000 people and 2,000 </a>of them people already working in crypto, its scale is limited. London remains a global financial center, but crypto is still finding its feet there as the government tries to focus its direction on the sector.</p>
<p>And then theres the US, where the SEC has been hostile for years, and the results of the change of administration and SEC chair are yet to bear tangible fruit. This week’s markup hearings on market structure legislation are make-or-break.</p>
<p>Public adoption is strong. According to the <a href="https://www.henleyglobal.com/publications/henley-crypto-adoption-index" rel="noopener noreferrer nofollow">Henley Crypto Adoption Index</a>, the UAE is ranked third globally in individual crypto usage behind Singapore and Hong Kong. Locals are not just investing theyre building.</p>
<h2 class="wp-block-heading" id="uae-concerns-over-human-rights-and-censorship">UAE: Concerns over human rights and censorship</h2>
<p>The UAE isnt without risks, however. The legal system can be opaque for foreign entrepreneurs. <a href="https://www.amnesty.org/en/location/middle-east-and-north-africa/middle-east/united-arab-emirates/report-united-arab-emirates/" rel="noopener noreferrer nofollow">Human rights issues</a> and censorship concerns raise eyebrows. The <a href="https://www.theguardian.com/technology/article/2024/may/08/crypto-entrepreneur-tortured-dubai-police" rel="noopener noreferrer nofollow">headlines around detained crypto entrepreneurs</a>, even if rare, make Western institutions cautious.</p>
<p>Theres also the issue of inter-emirate license portability. ADGM, DIFC and VARA each issue separate licenses. While cooperation is improving, seamless passporting remains a work in progress.</p>
<p>Stablecoin rules are now in place, and the next test will come with the <a href="https://cointelegraph.com/news/dubai-land-department-real-estate-tokenization-ripple" rel="noopener noreferrer nofollow">rollout</a> of its decentralized finance framework, which has a transition deadline of <a href="https://laraontheblock.com/uae-central-bank-to-oversee-virtual-asset-payment-and-defi-ecosystem/" rel="noopener noreferrer nofollow">September</a> 2026 for projects to become compliant.</p>
<p>Still, if the last five years are any indication, the Emirates will meet the challenge.</p>
<p>The UAE isnt just creating a sandbox for crypto. Its laying the foundation for a sovereign-scale, long-term digital asset economy one that includes everything from trading and custody to tokenized real estate, AI governance and blockchain-backed government infrastructure.</p>
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Here’s why crypto is moving to Dubai and Abu Dhabi

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Other articles published on Jan 14, 2026

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