UAE steps up as global crypto leader while Trumps watch closely
As the United States braces for a potential cryptocurrency policy shift, with Donald Trump set to assume office on the 20th of January. Now, the spotlight has turned to global leaders in digital finance.
UAE’s crypto vision
Among them, the United Arab Emirates (UAE) stands out as a thriving hub for cryptocurrency and blockchain innovation.
Advocates suggest the UAE’s clear regulations and strategic investments offer a compelling blueprint for the incoming U.S. administration.
In fact, by embracing blockchain and establishing robust regulatory frameworks, the UAE has struck a leadership position in an industry where the U.S. has often faltered.
Eric Trump on UAE’s role in crypto
Speaking on the matter, Eric Trump during the Bitcoin [BTC] MENA conference in Abu Dhabi, underscored the UAE’s role as a model for crypto advancement.
He said,
“The UAE has shown how to do this right. By supporting crypto innovation, they’ve created jobs, attracted investment and strengthened their global standing. The U.S. can and should do the same.”
In fact, between July 2023 and June 2024, crypto transactions in the UAE soared to an impressive $34 billion, marking a 42% increase from the prior year, as per Chainalysis’ report.
UAE’s crypto success story
A key factor in this surge was the government’s decision to exempt cryptocurrency transactions from value-added tax. This exemption was applied retroactively to 2018.
This tax relief, designed to “supercharge” the sector, has reinforced the UAE’s position as a global leader in digital finance. It has attracted businesses and investors.
Additionally, there has been a significant focus on stablecoins due to their reliability in volatile cryptocurrency markets. Stablecoins are increasingly utilized for cross-border payments and everyday transactions.
Other developments
Additionally, in a notable development, Tether announced plans to introduce a Dirham-backed stablecoin in partnership with Abu Dhabi-based firms.
Remarking on the same, Eric Trump added,
“Stablecoins are a bridge between traditional and digital financial systems. They offer reliability and liquidity, making them a key tool for financial inclusion and global trade.”
Additionally, the UAE’s progressive integration of blockchain into public services and its balanced regulatory approach has further provided a compelling blueprint for various nations.
What should Trump take away from UAE’s playbook?
As the Trump administration focuses on digital finance, the U.S. faces a critical moment to redefine its role in the global crypto market.
With the sector’s market capitalization soaring to $3.3 trillion in 2024, the stakes have never been higher.
Trump’s decisive actions show a commitment to innovation while safeguarding investors. With fierce international competition, this isn’t just about reviving the crypto landscape—it’s a race to lead the future of digital finance.
