coinspress.com
Abu Dhabi has emerged as a promising hub for cryptocurrency companies, drawing attention amidst regulatory uncertainties in key markets like the U.S.
Recently, notable industry players such as Copper Technologies, Paxos Trust, and eToro Group Ltd have set their sights on this dynamic city. They’re enticed by a blend of investor-friendly policies, an expanding network of partners, and a progressive regulatory environment.
This shift towards Abu Dhabi as a crypto haven has been highlighted in a recent Bloomberg report, particularly underscoring the supportive landscape offered by the Abu Dhabi Global Market (ADGM) for crypto-centric businesses. Executives within the industry have commended Abu Dhabi for its strategic advantages, citing a growing network of partners, a regulatory approach conducive to innovation, and the presence of substantial investors.
In a recent interview, Copper CEO Dmitry Tokarev emphasized Abu Dhabi’s eagerness to embrace blockchain-based financial markets. Meanwhile, the ADGM’s Financial Services Regulatory Authority has articulated its alignment with the evolution of digital assets, as detailed in its forward-looking 2024 business plan.
Comparatively, the ADGM’s decade-long establishment has garnered respect within the industry, positioning itself as a distinct entity from Dubai’s Virtual Assets Regulatory Authority (VARA), which exclusively focuses on the crypto space.
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Walter Hessert, Head of Strategy at Paxos Trust Co., highlighted the strategic advantages of ADGM, citing the opportunity to operate under British common law and the regulator’s commitment to transparent and consistent regulatory frameworks.
While the UAE’s crypto industry remains smaller in scale compared to more established hubs, businesses are strategically acquiring licenses in both Dubai and Abu Dhabi to tap into local and international market potentials. The UAE is focused on solidifying its stance in the evolving crypto landscape by showcasing robust regulatory measures and stringent actions against unlawful activities.