Cryptocurrency

UAE Poised to Benefit as EU Crypto Regulation Triggers Exodus

The UAE is proving to be a favored jurisdiction of choice for crypto and stablecoin businesses escaping the new EU crackdown next year. Gurus estimate that most virtual asset firms will shift their bases to Dubai and Abu Dhabi due to MiCA regulation to take effect on 30 December, 2024.

MiCA also implies all-round licensing and supervisory rules in 27 EU countries that strive to improve the stability of the market. However, these measures including seeking to ensure that smaller stable coin issuers keep 30% of their reserves in low risk EU based commercial banks and larger issuers such as tether keeping 60% or more of their reserves as cash has sparked debates over stability and risk.

UAE: A Haven for Crypto Firms

Market professionals pointed to regulatory support for cryptocurrencies as one of the reasons for such companies exiting the EU. Rabea Ataya, CEO of Bayt.com, and Paybis’s Chief Revenue Officer, Uldis Teraudkalns point to the UAE as having a stable legal environment and access to finance and an excellent geographical location for business. Currently, the UAE is considered an innovative country in terms of the use of cryptocurrencies and is interested in creating favorable conditions for crypto companies.

While some firms may consider transfers within the EU to other jurisdictions that are more favourable, others are looking elsewhere. Other countries that border regions which are investing in South Korea such as the UK and Switzerland also stand to benefit from this movement.

Challenges and Opportunities

The WeFi growth chief came from Ripple, Agne Linge, also observed that while MiCA capital rules could impact those small firms, they might lead to industry contraction and lesser competitors. However, larger players which include Tether, with massive funds and a worldwide presence, ought to endure.

The EU is the biggest loser when crypto start-ups look for cheaper, more friendly locations like the UAE. The legal framework and a strong base make the UAE suitable for the next wave of innovations in the sphere of cryptocurrencies.

Ashik Ahmed

Ashik Ahmed (Aryan) is a tech writer for Dubai News, covering a wide range of topics with a particular specialization in artificial intelligence and technology. With a keen eye for detail and a passion for the latest innovations, Ashik has established himself as a trusted voice in the tech industry. he is the founder and CEO of XovaTech, Offers computing, software, website dev, SEO, online marketing and also into celeb management and artificial intelligence. His in-depth analysis and insightful commentary provide readers with a comprehensive understanding of the rapidly evolving technological landscape. Whether it's emerging trends, groundbreaking startups, or the latest gadgets, Ashik's expertise ensures that his articles are both informative and engaging.

Recent Posts

Dubai Unveils $1 Million AI Film Award and Dh50 Million Initiative for Content Creators

Dubai has announced two groundbreaking initiatives to boost global creativity and strengthen its position as…

2 days ago

Dubai Fountain Nears Reopening After Major Makeover with Advanced Tech

The Dubai Fountain is one of the most emblematic tourist sites in Dubai, and will…

6 days ago

OpenAI to Open First India Office in New Delhi as AI Adoption Accelerates

OpenAI has also announced to open its first office in India, where it will establish…

1 week ago

Bitcoin MENA 2025: Abu Dhabi to Host Michael Saylor and Global Crypto Leaders

Abu Dhabi is preparing to host one of the most awaited crypto events of the…

1 week ago

AI Humanoid ‘Robert the Robot’ Wows Los Angeles with Money-Making Skills

Los Angeles witnessed a futuristic spectacle this week as Robert the Robot, an AI-powered humanoid…

2 weeks ago

Kim Kardashian to Open First Skims Boutique in Dubai’s Mall of the Emirates

American reality TV star and entrepreneur Kim Kardashian is bringing her fashion brand Skims to…

2 weeks ago