The United Arab Emirates (UAE) is rapidly emerging as a world leader in the digital asset landscape, driven by strong regulation, progressive policies, and increasing institutional involvement, according to experts at the fourth edition of Abu Dhabi Finance Week (ADFW).
During the event — the largest finance and investment gathering in the Middle East and North Africa — Binance co-CEO Richard Teng highlighted the UAE’s pioneering role in the crypto sector. He noted that Abu Dhabi became the first jurisdiction to introduce cryptocurrency regulations back in 2018, a milestone he personally advocated for during his tenure as CEO of the Abu Dhabi Global Market (ADGM). Teng later joined Binance in 2021.
Teng emphasized that the UAE’s success stems not only from its “regulatory clarity” but also from the growing institutional adoption of digital assets. Relying solely on retail investors, he explained, can increase market volatility, whereas institutions bring long-term stability and confidence.
One of the UAE’s key recent achievements includes Binance obtaining its first global licence in Abu Dhabi. Another major development was Zand Bank securing approval to issue the country’s first dirham-backed stablecoin on public blockchains — a move seen as crucial for wider adoption of digital payments and tokenized finance.
Speaking at the sidelines of ADFW, Zand Bank CEO Michael Chan explained that crypto regulation is shaped by two major forces: a country’s long-term strategy and the market’s appetite for digital assets. He pointed out that the UAE has an edge because it already operates as a genuine crypto hub, offering clear, balanced rules that treat traditional money and digital assets equally.
Chan added that the UAE benefits from an exceptionally high adoption rate among consumers and businesses, which further accelerates innovation. In contrast, he noted, regions like Hong Kong still face key decisions — such as whether to allow broader retail participation — that could define their future as digital asset centers.
For now, the UAE’s ambitions are boosted by a highly active and enthusiastic local market, solidifying its position as one of the world’s most dynamic destinations for cryptocurrency growth.
