The UAE has quickly become home to some of the world’s biggest crypto firms and exchanges, from Binance in ADGM to Crypto.com, OKX, and Bybit in Dubai. None of this has been a coincidence: Sharp yet not overly restrictive regulation, a tax and business-friendly environment, and a lifestyle that complements those features for executives who move here with easy, safe, and liveable conditions, have been boons for the sector in the past few years, experts tell us.

The UAE could become “the Wall Street of cryptocurrencies,” BTC chief Brandon Green said last year as an influx of crypto heavyweights, along with sector-friendly regulation and initiatives, have positioned the Emirates as a global hub.

The country scored a perfect 10 on Henley’s recent Crypto Adoption Index for tax-friendliness, with zero levies on trading, staking, and mining, and a raft of Emirati players are integrating crypto payments into their services. Meanwhile, Bybit and DL placed the UAE as the fifth most adopted institutional hub globally, behind Singapore, the US, Lithuania, and Switzerland in their World Crypto Rankings 2025. Separately, Triple-A estimates UAE crypto user penetration at roughly 31%.

The country also acts as a “de facto bridge” for tokenized finance between Asia, Europe, and Africa, Bybit and DL wrote, reflecting its geographic and regulatory alignment across time zones and capital corridors.

This all translates into measurable flows. The Chainalysis 2025 Geography of Crypto Report (pdf) shows how the UAE’s multi-regulator setup is shaping activity on the ground. Institutional transfers into the country are growing, but smaller merchant and retail transactions are surging too — small retail transfers (under USD 1k) rose 88.1%, while large retail transfers rose 83.6% and professional transfers rose 79.5% — suggesting that crypto is becoming a practical tool for everyday business as well as big players.

A lot of it boils down to regulatory flexibility and structural diversity

“What you find here in the UAE… is the receptiveness of the regulator,” Carolina Rios (LinkedIn), CEO and founder of Saja Legal Consultants, told Enterprise AM UAE. In her view, the shift isn’t just about headline tax rates — it’s about access and openness. “They are very proactive [in terms of] talking to market participants,” she said. Regulators actively engage with the industry, and the effect of this dialogue is visible in Vara and ADGM’s published feedback on final regulations.

One crypto expert contrasts this with more transactional postures in other major crypto markets: “Singapore always told you what they offer and what you can get from there — but UAE regulatory bodies are very welcoming,” Gaurav Dubey, chairman of TradeDog Group and CEO of TDeFi, told Enterprise AM UAE, noting that regulators in the UAE engage actively, maintain a visible presence, communicate clearly, and treat incoming firms in a welcoming manner.

The variety also helps: The diversification of regulatory frameworks in the UAE — with Vara (Dubai mainland), ADGM, and DIFC each operating separate regulatory frameworks — is another important differentiating factor for the UAE, Rios said. Crypto firms don’t have to commit to a single regulator, and the country’s multiple frameworks can actually be an advantage compared with more centralized models like Singapore’s, Rios said. Crypto firms operate globally from day one, so regulatory rules aren’t just domestic — they often have implications for operations worldwide, she added.

The fact that there are several jurisdictions, each with its own rules, licensing criteria and enforcement style, allows founders to align regulatory strategy with their business model and risk tolerance instead of forcing every operator into the same structure.

Rapid changes in regulations are another reason founders choose the UAE — a dynamic seen, for example, in the recent DFSA rulebook revisions that updated crypto token governance frameworks in response to market developments, Dubey said.

Do the multiple frameworks offer any disadvantages?

The multiple regulatory approaches in the UAE aren’t a sign of harmful fragmentation, Rios thinks. “Regulatory arbitrage is natural and organic to the industry,” and it can be leveraged by regulators and companies, Rios said. In a global industry, firms tend to gravitate toward jurisdictions that understand their segment and can adapt quickly, she added.

While the framework works, it isn’t without its challenges, Dubey said, adding that a more streamlined, unified UAE tax and compliance regime is needed, calling for “a single point of entry and a single point of exit” — language that resonates with founders familiar with singular regulator models.

Rios, meanwhile, cautions against over-centralization. “When you require full compliance [licensing]… for very new models, you are actually restricting the execution and the possibilities of growth,” she said, emphasizing the role of pilots, sandboxes, and open consultation in policy design.

There is coordination taking place across the different regulators: For example, the Securities and Commodities Authority (SCA) and Vara recently agreed to recognize virtual asset licenses across each of their jurisdictions, meaning Vara-licensed firms can more easily offer their services in emirates other than Dubai. Coordination protocols and regulatory checks will still be required, but the shared registration framework, real-time data sharing, cross-jurisdictional AML/CFT coordination, and joint supervisory protocols help streamline the process.

The move came in a bid to eliminate the need for “separate, potentially conflicting” approval processes and to lower operational risk for crypto firms looking to operate nationally.

The cherry on top: A livable ecosystem rather than a mere logistical option

Infrastructure support and liveability matters too. Visa approvals and resident permits are fast and reliable here, allowing founders to bring in large teams without bureaucratic bottlenecks, Dubey said. Dubai’s infrastructure makes it easy for employees and executives to live close to their workplaces, giving businesses a real, tangible advantage over purely offshore domiciles where teams rarely visit or have limited local access, he notes.

Companies can choose between mainland and financial freezones for incorporation, which can make it easier for founders and teams to live and work near their operations. Unlike some offshore jurisdictions that function mainly as legal addresses, mainland and freezone setups in the UAE can coexist, letting businesses maintain a presence on the ground while navigating local requirements.

Tags: