Here's why crypto is moving to Dubai and Abu Dhabi

CoinTelegraph

by Monty Munford

January 14, 2026

AI-Generated Deep Dive Summary

The United Arab Emirates (UAE), particularly Dubai and Abu Dhabi, has emerged as a leading hub for cryptocurrency due to its balanced approach of regulatory clarity and fostering innovation. The UAE's strategic framework provides the perfect environment for crypto businesses by avoiding overly restrictive regulations while ensuring legal certainty. This has attracted major players like Binance and Coinbase, with over 1,800 crypto companies now operating in the region, including 600 in Dubai alone. Abu Dhabi pioneered comprehensive digital asset regulations as early as 2018, covering areas such as exchange licensing and tokenization. Dubai followed suit in 2022 by establishing its Virtual Asset Regulatory Authority (VARA), which oversees the entire crypto ecosystem. This coordinated effort between federal and local regulators ensures legal consistency across the UAE, a key factor drawing crypto firms. The UAE's success also stems from substantial financial backing through sovereign wealth funds like Mubadala, which has invested heavily in blockchain infrastructure. This financial support enables growth in areas such as tokenization projects and Web3 startups. The collaboration between Dubai and Abu Dhabi regulators, along with federal initiatives, creates a unified and supportive environment for crypto innovation. For those interested in cryptocurrency, the UAE's approach offers stability and growth opportunities. It combines clear regulations with significant investment, making it an attractive destination for both established firms and emerging projects. This ecosystem not only attracts major investors but also fosters a thriving community of blockchain and Web3 startups, positioning the UAE as a global

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Originally published on CoinTelegraph on 1/14/2026