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The experts at Recap, a crypto tax platform, named Dubai the second most crypto-friendly city in the world. Dubai left megalopolises such as New York and Singapore behind, with London coming in first as the crypto capital of the world.
It comes as no surprise that the UAE has been ranked as one of the top crypto-friendly cities, given its longstanding support and promotion of the virtual assets sector. The Middle East has seen rapid adoption of cryptocurrencies, with over 11% of UAE citizens already investing in crypto. The trend has also led to the emergence of Crypto Online Casinos, further enhancing the region’s crypto-friendly environment. The popularity of cryptocurrencies has also spurred the organization of numerous crypto-related events in the UAE, cementing its position as a hub for the virtual assets sector.
The Rise of Crypto
Over the past decade, cryptocurrencies have emerged as a prominent financial instrument, transforming from a niche product to a widely used payment system. As of 2023, there are now over 9,000 different crypto coins in circulation, a testament to their growing importance in the world of finance. Their proliferation has also led to an increase in their influence on the regulated financial market, demonstrating the staying power and potential impact of cryptocurrencies in the years to come. Now, cryptocurrencies are being accepted as a payment method by world-leading companies such as Microsoft, Wikipedia, and Burger King. However, not all cities offer crypto users and investors the same regulations and financial atmosphere.
Why Is Dubai a Leading Cryptocurrency Centre
Recap’s decision to identify the top crypto-friendly cities in the world was based on various factors that can contribute to the growth and adoption of cryptocurrencies. These factors were selected based on eight key data points, which serve as indicators of the level of openness and potential of the cryptocurrency market in a given city. These factors include the quality of life rating, crypto-related events, crypto-related jobs, crypto businesses, the expenditures on Research and Development as a percentage of GDP, the number of digital currencies, bank ATMs, taxes on gains, and crypto ownership.
Dubai provides a crypto-friendly environment by incorporating the most important points in the list and is set to further advance in cryptocurrency and blockchain technology usage. This is largely due to the UAE government passing laws that regulate the ownership, trade, and investment in cryptocurrencies. The UAE Blockchain Strategy of 2021 has set a goal to transform half of its financial transactions into the blockchain platform and save additional time, money, and effort on the processing of traditional printed documents.
The biggest incentive for investors comes in the form of a fantastic 0% tax on capital gains for both UAE citizens and foreigners who work in the country. With this approach, Dubai has attracted an inflow of crypto investments that have stimulated economic growth. The rising number of businesses setting up shop in the UAE has brought changes in the labor market as well. There is a high demand for ML engineers, software engineers, data scientists, crypto analysts, QA analysts, traders, technical writers, and more. Also, the UAE offers the highest salaries in a bid to attract the best professionals on the market.
Dubai Crypto Market Opportunities
Dubai has a high quality of life index that takes into account citizens’ purchasing power, health care, climate, living costs, price-to-income ratio, traffic commute time, and pollution. It is also in the top ten safest cities in the world. Another vital point for crypto investors and users is the networking and spread of know-how regarding digital currencies. Dubai has a vast selection of crypto-related events, such as the Dubai Blockchain Network Meetup, Innovative Finance Expo, different seminars, exhibitions, and summits. These events offer opportunities for crypto enthusiasts to get better insight into the technology and attend workshops. As for professionals, it’s a perfect way to take part in panel discussions and expand their network.
Founded by the UAE government, the Virtual Assets Regulatory Authority (VARA) is a regulatory body for the virtual assets market that aims to clear the way for international cooperation and industry growth. It aims to promote setting up new crypto-businesses and opening crypto shops in the country. The United Arab Emirates occupies the 5th place in crypto ownership by country, which gives users, owners, and investors confidence in the Dubai crypto market. It also provides an extensive choice when selecting a crypto asset that fits one’s needs from the many digital currencies available.
Final Thoughts
Dubai is, without a doubt, a futuristic city, from its looks to its laws and regulations. Its crypto-readiness also testifies to its dedication to incorporating innovative financial instruments and adapting to the digital age. UAE’s crypto regulatory framework is quite relaxed, and the digital asset environment is quite inviting. It’s an excellent market for progressive investors and crypto-owners looking for a favorable tax policy, a skilled workforce, and a dynamic crypto culture.