Key Takeaways
- Middle East sees 166% growth in daily active crypto traders in 2024.
- UAE leads the region, with $338.7 billion in expected on-chain value in 2024.
- Favorable regulations and tax benefits are making the region a hub for crypto businesses.
The Middle East is rapidly establishing itself as a key player in the global cryptocurrency landscape, with both local traders and international businesses flocking to the region.
A new report from Bitget highlights a significant uptick in crypto trading activity, with a 166% increase in daily active traders across the region in 2024.
166% Growth in Active Crypto Traders
The report shows that the number of daily active crypto traders in the Middle East soared from 330,000 in 2023 to over 700,000 by the end of 2024.
This rapid growth is a direct result of favorable regulations, the approval of Bitcoin ETFs, and a broader market recovery that has rekindled interest in digital assets.
The region now boasts 500,000 daily traders, positioning it as a major force in the global crypto market.
The UAE Leads the Charge
A significant portion of this growth can be attributed to the UAE, which has emerged as the region’s leading crypto hub.
The country is ranked third globally on the Henley crypto adoption index for 2024, with an estimated $338.7 billion in on-chain value expected to flow through the country between July 2023 and June 2024.
According to Chainalysis data, the UAE accounts for 7.5% of global transaction volume, with its daily trader count reaching around 500,000.
Gracy Chen, Managing Director of Bitget, noted that the UAE’s regulatory environment, which favors crypto companies, has been pivotal in this growth.
“The UAE, in particular, holds significant importance as a regional base. It has emerged as a hub for cryptocurrency talents, funds, and enterprises, while also steadily gaining global influence in the crypto space,” She noted.
Attractive Regulations and Tax Benefits
The Middle East’s favorable regulatory environment is a key factor behind its rise as a crypto hub.
Mohammad Alkaff AlHashmi, Co-Founder of HAQQ Network, doubled down on this point, asserting:
“Countries in the GCC are positioned to lead the ongoing blockchain revolution. The most obvious way they do this is through proactive regulations enabling crypto service providers to secure the licenses to operate without hassles. This regulation appears uniform within the GCC, as evidenced by the growth in VASP licenses issued over the past few years.”
AlHashmi pointed to the UAE, highlighting how the jurisdiction offers crypto companies a special development zone free from heavy taxation, making it an ideal base for businesses looking to tap into the burgeoning crypto market.
The relaxed regulatory climate, combined with a growing pool of talent and investment, has made the region a magnet for global players looking to expand their footprint in the crypto space.
As the Middle East continues to grow as a crypto hub, the trend is expected to accelerate in the coming years.
The combination of favorable regulations, growing interest in digital assets, and the UAE’s strategic positioning suggests that the region will remain a key player in the global crypto market for the foreseeable future.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
