A few days ago in Dubai, I was in a state of intensive meetings with new and old friends in the industry and learning about new projects. These past two days were spent in Abu Dhabi having various in-depth exchanges with local policymakers.
The macro approach of the UAE is also very clear, rapidly transforming from a past oil economy to a future-oriented financial technology hub (visually, the highway between Dubai and Abu Dhabi is still bustling with traffic at 2 AM, and there are construction sites everywhere in both cities, reminiscent of Shenzhen 10 years ago). The cryptocurrency industry is one of the core sectors for taking advantage of opportunities, and it is currently in a relatively advantageous position.
Binance has obtained the world's first complete set of licenses (exchange, clearing, broker-dealer) in Abu Dhabi (ADGM) and moved its headquarters there, significantly enhancing the UAE's status as a global crypto hub — theoretically, the total assets under Abu Dhabi's regulation have already greatly surpassed those of the SEC. With the momentum of implementation accelerating, policymakers emphasize compliance, institutional-level infrastructure development, and stablecoin integration:
Dubai (led by the VARA and DIFC frameworks)
Government service crypto payment integration: Dubai's financial sector has signed a memorandum of understanding (MoU) with Crypto.com, allowing residents to use cryptocurrencies to pay government fees, with stablecoins automatically converted to dirhams. XRP has become the first digital asset to gain regulatory approval in Dubai, marking a crucial step towards Dubai's transformation into a cashless society.
- Stablecoin regulatory extension: The Dubai Financial Services Authority (DFSA) has approved Circle's USDC and EURC as the first stablecoins to be included in the crypto token regime, applicable to nearly 7,000 businesses in the DIFC for payments, fund management, and digital asset services. At the same time, Tether's USDT expands in real estate and payment sectors.
- Derivatives and retail trading open: Under the VARA framework, OKX has launched regulated crypto derivatives trading, supporting retail traders in futures, perpetual contracts, and options (up to 5x leverage). Laser Digital has obtained Dubai's first institutional-level OTC crypto options license.
- Infrastructure development: Dubai has announced the construction of the 'Crypto Tower' (a 17-story building located in Jumeirah Lake Towers), providing 150,000 square feet of office space specifically for blockchain startups, incubators, and AI innovation companies, equipped with an NFT gallery and crypto club.
- Bank-level adoption: State-owned bank Emirates NBD has launched crypto trading services through the Liv X app, supporting the buying and selling of BTC, ETH, SOL, XRP, and ADA, in collaboration with Aquanow and Zodia Custody.
Abu Dhabi (led by the ADGM and FSRA frameworks)
Comprehensive financial law enacted: Federal Decree No. 6 of 2025 will come into effect, placing DeFi, Web3 platforms, stablecoin issuers, DEXs, and cross-chain bridges under the supervision of the central bank (CBUAE). All projects must obtain licenses by September 2026, or face hefty fines. This provides a clear regulatory path for RWA.
- Stablecoin and payment track approval: ADGM has approved USDT as a 'fiat-referenced token,' supporting 9-12 public chains (such as Aptos, TON, TRON, Cosmos, Near, Solana) for institutional payments, custody, and lending. Circle has obtained a Financial Services Permission (FSP), becoming a regulated Money Services Provider and appointing a Middle East head to strengthen regional cooperation.
- Local stablecoin issuance: First Abu Dhabi Bank plans to issue a dirham stablecoin regulated by CBUAE, settling based on ADI Chain (the first institutional-level L2 blockchain in the Middle East), supporting Abu Dhabi real estate tokenization (ADREC collaboration) and government projects in over 20 countries.
- Global regulatory benchmark: ADGM is expanding the Al Maryah Island financial district with a $16 billion investment. Ripple's RLUSD, tokenized assets, and XRP have been approved by the DFSA for all financial services. Overall, Abu Dhabi focuses more on institutional and global compliance (competing with London and Singapore), while Dubai emphasizes retail and innovative infrastructure. The regulatory environment in the UAE is shifting from 'offshore experimentation' to an 'onshore financial system,' attracting global liquidity.
Here's a little Easter egg as well: An important ecological project incubated by the 0G foundation was officially announced yesterday at a closed-door event in Abu Dhabi as the data service provider for the Zambian government, with the data layer fully integrated into the infrastructure of 0G (the project's name cannot be disclosed for now).
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