Abu Dhabi is Becoming an Attractive Destination for Crypto Investment

Abu Dhabi is the capital of the United Arab Emirates (UAE). The capital city’s financial services are concentrated in Abu Dhabi Global Markets (ADGM). ADGM’s main aim is to concentrate on fintech and this is the reason both blockchain technology and cryptocurrencies are integrated into the ecosystem. This is one of the several reasons why Abu Dhabi has become a popular destination for crypto investment.

Companies That Recently Chose Abu Dhabi for Crypto Investment

The popularity of Abu Dhabi recently has increased because many companies have started choosing the city for crypto investment. eToro Group Limited, Copper Technologies Limited, and Paxos Trust Co are the latest examples of such companies. These three companies have secured licenses and have set up businesses inside the international economic zone. 

Copper Technologies Chief Executive Officer Dmitry Tokarev commented on Abu Dhabi’s crypto investment prospects that “the buy-in generally for blockchain-based financial markets as the future for Abu Dhabi is very high.”

Reasons Behind Abu Dhabi’s Growing Popularity

The UAE government has taken many steps to promote cryptocurrencies in two of its famous cities Dubai, and Abu Dhabi. In recent times, Abu Dhabi has nurtured a supportive environment for crypto businesses. Many corporate executives have praised the city’s strategic advantages such as having a robust network, favorable regulatory policies, and enthusiastic investors. 

Abu Dhabi’s ADGM is also gaining a considerable amount of recognition similar to Dubai’s VARA. In August this year, ADGM granted financial services to virtual asset firm M2. This is helping the company to conduct multilateral trading from the capital. The regulatory approval is highly favorable for crypto investors because it allows both retail and institutional clients to purchase, sell, and store virtual assets. It has high levels of security, integrity, and trust. Moreover, M2 also allows UAE users to buy cryptocurrencies with the help of using fiat money. In a nutshell, therefore, the ADGM regulatory framework establishes clear guidelines for crypto investors. 

Secondary Factors That Favor Abu Dhabi

Innovative Environment and Superior Infrastructure

Abu Dhabi not only has transparent licensing policies and clear regulations to support crypto investment. Secondary factors such as superior infrastructure and innovative environment are attracting investors around the world. For instance, ADGM supports Hub 71 which supports investors, incentive programs, and tech startups. It will also back Web3 projects and has already announced a $2 billion fund.

Favorable Public Attitude

A favorable public attitude is critical for attracting investors of all hues. A YouGov survey conducted last year showed that almost 74% of young respondents from the age of 25-34 years in the UAE are interested in cryptocurrencies. This largely helps in increasing the confidence among crypto companies and potential investors. 40% of consumers in the UAE say that they trust cryptocurrencies, which is quite high by world standards. Even Western countries like the US, Canada, Germany, etc. do not have such high figures. Nearly 21% of respondents in the survey want to trade with cryptocurrencies in the next 12 months. 

Also Read– El Salvador Accepts Bitcoin As Legal Tender and Frames Policies To Attract Crypto Investment

Bottom Line

Abu Dhabi currently has a favorable environment for crypto investment. This is the reason it is becoming one of the most attractive destinations for crypto companies. The policies of the UAE government favor cryptos and there is sufficient infrastructure for companies to invest in Abu Dhabi. Moreover, the regulatory approval of ADGM is lenient enough to attract investors. The secondary favorable factors such as the prevalent favorable public attitude in the UAE and innovative environment may also ensure long-term success for crypto investors.