Industry experts anticipate a significant reshaping of Dubai’s crypto landscape, with a surge in smaller crypto firms and collaborative agreements between established market leaders and emerging digital asset ventures. This transformation follows the regulatory authority’s decision to reduce entry barriers for smaller entities, according to industry insiders.
Lowering the regulatory costs is intended to facilitate the entry of smaller firms into the market.
Several emerging digital asset ventures from India and other regions are reportedly finalising or exploring entry strategies into Dubai.
Leading industry players such as Bitget, Crypto.com, Nine Bocks, and Deribit’s Dubai-based unit are expected to engage in collaborative ventures with smaller entities, industry sources suggest.
This flurry of activity comes after the Chief of Dubai’s Virtual Assets Regulatory Authority (VARA) announced plans to streamline compliance costs for small digital asset firms.
VARA CEO Matthew White revealed that the regulator is exploring various approaches to tailor regulations to suit the needs of all participants.
Bitget’s COO remarked that reducing entry barriers will not only attract startups and smaller crypto ventures to Dubai but also enable their success in the rapidly growing regional and global market.
Amir Tabch, CEO – Middle East at Liminal Custody Solutions, emphasised the strategic importance of VARA’s proposed measures in supporting smaller enterprises vital for the crypto ecosystem’s diversity and dynamism.
He praised VARA’s proactive stance in refining policies to aid smaller players, demonstrating a deep understanding of sector challenges and a genuine commitment to fostering an inclusive financial landscape.
Tabch noted that by potentially involving larger entities to assist smaller ones, Dubai’s regulator sets a precedent for a collaborative and supportive regulatory environment.
He hailed VARA’s initiative as a vital step forward in balancing regulatory demands with the economic realities faced by smaller firms, ensuring a robust and accessible crypto market for all players.
This move is expected to further boost not only Dubai’s crypto market but also the broader MENA region, which already hosts over 1,800 organizations employing 8,650 people in the digital asset industry, as per the Crypto Oasis Ecosystem report.
