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The Middle East and North Africa (MENA) region is rapidly becoming a significant player in the global cryptocurrency market, with several countries taking proactive steps to regulate and foster the growth of digital assets. 

The region now ranks as the seventh-largest crypto market globally, with an estimated $338.7 billion in on-chain value received between July 2023 and June 2024.

The UAE is leading the charge in regulatory development which has established itself as a crypto-friendly hub. 

A balance between innovation and necessary safeguards characterizes UAE’s approach to regulation. The UAE has implemented a multi-layered regulatory framework, with authorities such as the Securities and Commodities Authority (SCA) and the Central Bank of UAE (CBUAE) overseeing different aspects of virtual asset services.

In particular, Dubai pioneered the creation of the Virtual Assets Regulatory Authority (VARA) in 2022. VARA, the world's first standalone regulator for virtual assets, is actively working on crypto licensing over a thousand entities conducting crypto-related activities within Dubai. This collaborative approach between regulators and industry players sets a precedent for other jurisdictions.

Reputed international organizations such as Binance, OKX, and Crypto.com have all received VARA approvals. Recently, NH Management, a Dubai-based consultancy firm offering crypto licensing support, assisted AMBER in securing its initial approval from VARA.

Tao Xiao, Partner at NH Management, discussed the complexity of obtaining a VARA license, describing the process as rigorous: 

“Having assisted numerous web3 companies with VARA licensing, the timeline to get approval varies on a case-by-case basis. The VARA process is inherently intricate, requiring significant time, meticulous attention to detail, and unwavering diligence.”

Following the UAE's lead, Saudi Arabia and Qatar have made significant strides in crypto. Saudi Arabia has emerged as the fastest-growing crypto economy in the MENA region, with a year-over-year growth of 154%.

The kingdom focuses on blockchain innovation, central bank digital currencies (CBDCs), gaming, and fintech development.

Not far behind, Qatar has shown 120% year-over-year growth in its crypto market. Qatar recently launched a new digital assets regime through the Qatar Financial Centre (QFC), a significant move.

This framework establishes legal and regulatory foundations for digital assets, asset tokenization, and trusted technology infrastructure, paving the way for accelerated fintech innovation.

The regulatory developments across these key markets will likely shape the region's distribution of decentralized finance (DeFi) and centralized exchange (CEX) platforms. This evolving landscape will impact financial inclusion and broader adoption of decentralized economic systems.

As the MENA region continues to embrace cryptocurrency and blockchain technology, the focus on licensing and regulatory clarity attracts local and international players. This progressive approach positions the area as a potential leader in the global crypto ecosystem, balancing innovation with consumer protection and market stability.

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NH Management is a leading corporate services and consultancy firm proudly established in the UAE, with a rapidly expanding global presence. The company aims to empower businesses by simplifying complexity and fostering sustainable growth through innovative solutions.

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