United Arab Emirates (UAE) Emerges As World’s Crypto Capital Beating USA, UK, & South Korea
The Kingdom of the United Arab Emirates (UAE) has beaten other countries to emerge at the top as the choice of location for the sale of digital assets. Per CoinSchedule, a blockchain and cryptocurrency rating company report, UAE accounts for more than a fourth of all funds raised in token sales this year, from January to early April.
US Losses its Top Spot to UAE & Slides Down to 7th Rank
While in the previous calendar year, the Gulf country wasn’t anywhere in the top ten rankings, this year, it saw more than $210 million in token sales that now accounts for over 25 percent of funds raised by token offerings.
Meanwhile, the US which took the top spot in last year’s ranking, this time represents less than 5 percent of this sales, accounting for under $38 million. As for why this slide down, the crackdown on initial coin offerings (ICOs) are playing an integral role here.
“We are seeing the continuation of the move away from the USA due to regulatory concerns,” Alex Buelau, chief executive officer of CoinSchedule told Bloomberg.
It’s All About Regulations
As for the surge in volume in UAE, it is reportedly tied to two big sales. One project is Bolton Coin that raised $67 million in an offering of a way to invest in crypto mining and real estate. GCBIB is another one that raised $142 million and is developing banking and insurance products for crypto holders.
Just like the US, authorities have a crucial role to play here as well but in a positive manner. UAE has been at the forefront of crypto adoption as a financial hub in the form of Abu Dhabi Global Market has been created that has been working on a regulatory framework for a crypto ecosystem that will allow for ICOs while Saudi Arabia is experimenting with a virtual currency for banks.
UAE is making a lot of headway in blockchain space as well as per the Emirates Blockchain Strategy 2021, in the next two years, 50 percent of all government transactions would be made using blockchain network. This move is estimated to save about $2.97 billion. It shows the country’s government’s positive attitude towards new technology and a successful attempt to lead the world in crypto and blockchain space.