According to a Sept. 25 Chainalysis report, the Middle East and North Africa region (MENA) accounted for 7.5% of all cryptocurrency transaction volume globally between July 2023 and June 2024.
Chainalysis estimates the total value received during the period to be $338.7 billion, with the vast majority of the transaction volume coming from institutional and professional investors.
According to the report, an estimated 93% of transactions were for $10,000 or more — dwarfing small retail investors, who accounted for a tiny 1.8% of all transaction volume in the region.
Breakdown of value received in the Middle East and North Africa region by transaction size. Source: Chainalysis
Onchain traffic in the region was primarily conducted through centralized exchanges. However, the report also noted the United Arab Emirates and Saudi Arabia’s “high interest” in decentralized platforms.
Related: Bybit eyes Muslim investors with Shariah-compliant crypto account
The United Arab Emirates becomes a global crypto hub
Chainalysis highlighted the United Arab Emirates’ emergence as a global crypto hub — primarily driven by regulatory clarity and a forward-looking stance on digital asset technology.
In August 2024, the Dubai Court of First Instance ruled that cryptocurrencies are valid payments for employment contracts and recognized that employees have a right to collect digital tokens stipulated in legal work agreements.
The plaintiff in the case, who agreed to a monthly salary stipulated in both fiat currency and EcoWatt tokens, did not receive the tokens from the employer and instead turned to the court for relief.
In 2023, the court ruled that the plaintiff was owed monetary damages but did not force the payment to be denominated in crypto — a position overturned in the August 2024 ruling.
UAE year-over-year growth in value received by investor class. Source: Chainalysis
In September 2024, financial regulators in the UAE took another step toward embracing digital assets by allowing virtual asset providers licensed in Dubai to service the entire country.
The chairman of Dubai’s Virtual Assets Regulatory Authority’s (VARA) executive board said the organization’s new partnership with the UAE’s Securities and Commodities Authority (SCA) streamlines the regulatory process and provides comprehensive assurances against investor risk and fraud.
More recently, the Central Bank of the United Arab Emirates approved a custodial insurance product that would protect financial institutions and their clients from losses resulting from hacks, internal fraud and damage to storage infrastructure.
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