Popularity of cryptocurrencies has increased across the Middle East, per a recent Bitget Research analysis.

By 2024, there will be 500,000 cryptocurrency traders operating in the region on a daily average. This number shows a 166% year-over-year growth.

The Middle East's Crypto Economy

Numerous variables, including supportive regulatory environments, the acceptance of Bitcoin ETFs, and the general optimism around the cryptocurrency market, are contributing to this spike in the adoption of cryptocurrencies. 72% of cryptocurrency users in the United Arab Emirates (UAE) actively invest in Bitcoin, making it the leader.

The Middle East has seen a surge in the number of users on centralised cryptocurrency exchanges worldwide. In February 2024, these exchanges had an average of over 500,000 daily active users, according to Bitget Research.

This figure represents a substantial jump from the previous year. The UAE's crypto-friendly policies and the approval of spot Bitcoin ETFs have played an important role in crypto adoption.

Although centralized exchanges dominate, decentralized platforms have gained momentum among Middle Eastern crypto users.

Decentralized exchanges built on blockchains like Solana, BSC, and Ethereum are becoming the go-to digital platforms for P2P trading. Trust Wallet, MetaMask, and Bitget Wallet are among the top choices in digital wallets.

Speaking about the report, Gracy Chen, the Managing Director of Bitget, mentioned: “We are excited about the potential of the Middle East market and anticipate continued growth in both users and market size. The UAE, in particular, holds significant importance as a base within the region.”

“It has emerged as a hub for cryptocurrency talents, funds, and enterprises while also steadily gaining global influence in the crypto space.

We look forward to contributing to and witnessing the further development of this dynamic market.

Steady Rise in Crypto Adoption

Generally, Bitget Research's report highlighted a positive outlook for the future of cryptocurrency adoption in the Middle East.

The report projects that the region's daily active users will continue to rise, reaching an estimated 700,000 by the end of 2024.

Dubai's Virtual Assets Regulatory Authority recently granted Binance a licence to operate as a full-service virtual asset provider.

The exchange started off with an Operational MVP licence that Binance FZE, its local unit, was able to get in the middle of 2023.

The exchange was able to provide institutional and individual investors with broker-dealer services and virtual asset derivative trading thanks to this licence.