Originally published on: September 26, 2024
A recent report by Chainalysis has revealed that the Middle East and North Africa region (MENA) contributed a significant 7.5% to the worldwide cryptocurrency transaction volume from July 2023 to June 2024.
During this period, the total value received in the region was estimated to be a staggering $338.7 billion, with a major portion of the transactions originating from institutional and professional investors. Surprisingly, a whopping 93% of transactions were valued at $10,000 or more, overshadowing the participation of small retail investors, who only accounted for a mere 1.8% of the total transaction volume.
The breakdown of transaction sizes in the Middle East and North Africa region was analyzed, with onchain traffic primarily flowing through centralized exchanges. However, there was noted interest from countries like the United Arab Emirates and Saudi Arabia in decentralized platforms.
In particular, the United Arab Emirates has emerged as a key player in the global crypto space, attributed to its regulatory clarity and proactive approach towards digital asset technology. Notably, the Dubai Court of First Instance’s ruling in August 2024 sanctioned cryptocurrencies as valid payments for employment contracts, affirming employees’ rights to receive digital tokens as per their work agreements.
Moreover, UAE financial regulators have been proactive in embracing digital assets, allowing licensed virtual asset providers in Dubai to operate nationwide, ensuring comprehensive investor protection against risks and fraud.
Most recently, the Central Bank of the United Arab Emirates approved a custodial insurance product to shield financial institutions and their clients from potential losses due to cyberattacks, internal fraud, and storage infrastructure damages.
With initiatives like these in place, the Middle East is poised to become a prominent hub for cryptocurrency activities. In fact, Saudi Arabia’s capital, Riyadh, is being touted as a potential crypto hotspot, emphasizing the region’s growing influence in the digital asset space.
Don’t miss this Crypto City Guide to unravel Riyadh’s potential as crypto’s hidden gem!
