UAE May Replace America as Global Crypto Leader

The United Arab Emirates (UAE) is poised to potentially surpass the United States as a global crypto leader, according to an analyst from ARK Invest.

The lack of regulatory clarity in the U.S. has forced several American crypto firms to explore opportunities abroad. Moreover, the recent crackdown against leading cryptos has also left many digital currencies in hot waters.

In a bid to sail away from the troubled waters, cryptocurrencies found a new haven in the United Arab Emirates.

Crypto Experts Have a Say!

ARK Invest analyst Yassine Elmandjra stated that countries like the UAE, South Korea, Australia, and Switzerland pose a threat to the United States’ dominance in the cryptocurrency sector.

Elmandjra pointed out the recent retreat of trading firms Jane Street and Jump Trading from the crypto market as indications of a broader response to the uncertain regulatory environment in the country.

He stated, “In the U.S., regulatory uncertainty seems to be discouraging both existing firms and new entrants in the crypto space.” He further emphasized that the liquidity of crypto assets in the United States has significantly declined. For instance, Bitcoin’s trade volume in the U.S. has decreased by 75% over the past two months. It dropped from $20 billion per day in March to $4 billion in the last week, according to Coin Metrics.

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UAE Emerges as the New Crypto Safe Haven

Meanwhile, the UAE has emerged as an attractive destination for crypto enterprises seeking a favorable regulatory approach.

Saqr Ereiqat, the co-founder of Crypto Oasis, a venture-building firm, praised the UAE’s progressive stance on digital assets. He stated that it makes the country an “ideal” location for both existing and new crypto ventures.

These sentiments were echoed by Coinbase CEO Brian Armstrong during a fireside chat at the Dubai FinTech Summit. He expressed concerns that the U.S. may lag in blockchain technology in the times to come.

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Coinbase is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) over regulatory ambiguity. It has indicated that it is exploring the UAE as a strategic hub for its business operations.

Similarly, Ripple CEO Brad Garlinghouse voiced dissatisfaction with the regulatory restrictions in the U.S. during the same event. Garlinghouse mentioned that his company is prepared to allocate $200 million to defend itself against the SEC.

Key Takeaways: UAE as the New Global Crypto Leader

The shifting cryptocurrency industry landscape suggests a potential decline in the United States’ position as a global crypto leader. Meanwhile, the UAE has emerged as a promising alternative for businesses seeking regulatory clarity and a supportive environment.

The UAE government is consistently launching initiatives to market itself as a safe haven for cryptocurrencies and digital assets. It all looks like the UAE will emerge as the new global crypto leader in the years to come.