02 March, 2024

Banks’ Hostility Hinders UAE’s Aim of Crypto Hub Despite its Bull Run Drive 

10 months ago

21 Nov, 2023

The crypto informational portal Coin Bureau stated that the banking institutions’ hostility towards the crypto industry has been the key hindrance to the full-fledged development of the crypto industry in the United Arab Emirates. The banks remaining uncomfortable opening bank accounts for the crypto clients, thwarted the country’s aim for a crypto hub, despite being one of the “primary drivers” behind the next bull market.

On April 27, Coin Bureau released a podcast video entitled “5 Countries That Will Drive The Next Crypto Bull Run!!”, highlighting the top five countries including UAE, Saudi Arabia, Hong Kong, Singapore, and France that would be the “primary drivers” behind the next bull market. The video asserted that the countries have been introducing “sensible regulations” for possible record-level institutional investments. 

Primarily, the host focused on the United Arab Emirates, reflecting back on its first pro-crypto regulations in 2018 when “the country announced its blockchain strategy 2021”. Later, in 2022, the country announced the introduction of a federal license for virtual asset service providers (VASPs), gradually resulting in the establishment of the crypto industry across the country.

Interestingly, as the crypto industry in the UAE was highly concentrated in Dubai, the other cities and even other Gulf countries, shaken by FOMO, started embracing crypto by introducing crypto regulations. However, the non-cooperation of the banks put the country on the grey list the last March.

In addition, the video also pointed out that the country has been initiating several activities and introducing regulatory steps to facilitate banking services to crypto clients that would open the “floodgates” for crypto capital in the country.


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