Introduction

Recently, Bitcoin price just crossed $ 100,000 for the first time ever, as excitement grows over President-elect Donald Trump’s plans to support cryptocurrency. Trump has promised to introduce friendly crypto regulations in the U.S. and even create a national Bitcoin reserve. While it’s unclear when or how these plans will happen, they show a big shift in the U.S. attitude toward crypto.

Since Bitcoin was created in 2009, it has captured the attention of tech lovers and curious minds. Bitcoin wasn’t just a new kind of money, it was a bold idea for decentralized and direct transactions without middlemen. This innovative idea opened the door for cryptocurrency investment to grow into a popular trend. Soon, other cryptocurrencies followed, each offering unique features and uses.

The United Arab Emirates (UAE) is becoming a key player in the crypto world. With its supportive rules and focus on growth, the UAE is now a hub for blockchain and cryptocurrency. In the Middle East and North Africa (MENA) region, institutional crypto investments reached $338.7 billion in 2023 and 2024, with Saudi Arabia and the UAE leading the way. Unlike many other countries, crypto use in the UAE is growing across all types of transactions. This shows that adoption is widespread and balanced, making the UAE an important leader in the future of digital finance.

This blog will guide you through key trends in cryptocurrency, explain the UAE’s supportive regulations, and explore why starting a crypto business in Dubai with A&A Associate could be a smart and profitable move.

Crypto Market Trends and Bitcoin’s Growth in 2024

Studying charts and past data helps us understand cryptocurrency trends, whether prices are going up, down, or staying the same. This knowledge makes it easier for investors to decide when to buy or sell. Increased interest from major political parties has also helped the crypto market grow. This has led to higher prices, more trading activity, and stronger investor confidence. Here are some well-known cryptocurrencies:

Bitcoin
Ethereum
Solana
Litecoin
Ripple

To understand the crypto market, it’s important to look at trends, spot key price levels, and use tools that show momentum or possible changes. How people feel about the market, like being positive (bullish) or negative (bearish), also affects prices. Long-term investors can benefit by watching for steady price increases. Global events, like the Russia-Ukraine conflict, can make the market more unpredictable, so staying updated on world news is important for smart investing.

Why Bitcoin is Rising

Even though the market can be unpredictable, Bitcoin’s price and popularity have continued to grow steadily, despite some short-term drops. Like in previous bull markets, this momentum has strengthened Bitcoin’s role as a leader in the crypto world. Bitcoin had a strong year in 2024, with the introduction of spot Bitcoin ETFs and election-related news further boosting its outlook. These developments have prepared Bitcoin for a strong start to 2025.

Investors can also use advanced tools, like MVRV (Market Value to Realized Value), to learn more about Bitcoin’s market trend and performance. This metric shows that Bitcoin is currently rising, confirming its strength as a leading cryptocurrency.

Why the UAE is a Leader in Cryptocurrency

The UAE has emerged as the third-largest crypto economy in the MENA region, despite having a smaller population compared to its neighbours. Between July 2023 and June 2024, the country received $34 billion in cryptocurrency, marking a 42% year-on-year growth, significantly higher than the MENA average of 11.73%. Small retail (<$1,000) and large retail ($1,000-$10,000) transactions in the UAE increased by over 80%, while professional ($10,000-$1M) and institutional ($1M-$10M) transfers rose by 46.30% and 55.07%, respectively.

The UAE government has adopted a two-step approach to regulate its growing crypto economy. First, it expands existing financial laws to cover digital assets. Second, it introduces new legislation specifically for cryptocurrencies.

VAT Exemption for Crypto Transactions

The UAE has decided to exempt the transfer and conversion of cryptocurrencies from VAT. This move makes the country more attractive to fintech and crypto companies and shows the UAE’s commitment to supporting financial innovation and attracting global businesses.

Business Activities under Crypto License

In the UAE, approved crypto-related activities include database management, self-investment in crypto assets, cryptocurrency consulting, and data mining. However, starting an ICO or registering a crypto exchange is only allowed under the regulation of a competent authority.

Crypto-Friendly Free Zones in the UAE

The following free zones support the UAE’s forward-thinking approach to crypto, combining innovation, security, and business-friendly benefits:

Abu Dhabi Global Market (ADGM): ADGM has been creating rules for fintech and cryptocurrencies since 2018. Its finance-focused free zone licenses crypto businesses, promoting innovation while ensuring compliance.

DMCC Crypto Valley: Dubai Multi Commodities Centre provides a strong base for crypto companies, making Dubai a global hub for secure and innovative practices.

Dubai Airport Freezone Authority (DAFZA): DAFZA offers licenses for proprietary trading in crypto-commodities, with access to world-class infrastructure and tax benefits.

Dubai World Trade Centre (DWTC): DWTC is a hub for cryptocurrency businesses under the supervision of the Securities and Commodities Authority (SCA).

Ras Al Khaimah Digital Assets Oasis: RAK Digital Assets Oasis focuses on digital and virtual asset companies, driving growth in the UAE’s digital economy.

Cryptocurrency Regulatory Authorities in the UAE

Securities and Commodities Authority (SCA)

The SCA is the UAE’s main crypto regulator, overseeing ICOs and virtual assets. ICOs are classified as securities, with rules to protect investors. Crypto exchanges and wallet services must obtain SCA licenses to ensure compliance with regulatory standards.

Financial Services Regulatory Authority (FSRA)

The FSRA regulates financial services in Abu Dhabi Global Market (ADGM) with a strong framework for fintech and cryptocurrencies. It covers AML/CFT requirements, market surveillance, and licensing while balancing security with innovation.

Virtual Assets Regulatory Authority (VARA)

VARA oversees virtual assets in Dubai, regulating their offering, use, and trading. It ensures compliance with regional and international standards and supervises Virtual Asset Service Providers (VASPs).

Dubai Financial Services Authority (DFSA) and DIFC

The DFSA regulates digital assets in the DIFC, focusing on investor protection and fostering innovation. Proposed DIFC laws aim to make Dubai a leading global hub for virtual assets.

Start Your Cryptocurrency Business in Dubai

The UAE is a global leader in cryptocurrency and blockchain, offering clear regulations and a supportive business environment. By 2024, new rules have made it easier for crypto companies to operate and grow. To set up a crypto business in Dubai, you need the right license for activities like trading, wallets, or exchanges. Here are our costs for the crypto license:

Crypto License Pricing in Dubai

License Type	License Cost (AED)	Service Fees (AED)	Total Price (AED)	Details
Crypto License	22,000	10,000	32,000	Instant License with No VARA Approval
Crypto License with One Visa	32,000	10,000	42,000	Instant License with No VARA Approval

A&A Associate simplifies the process by guiding you step by step. From choosing the best free zone to handling paperwork and working with authorities like VARA, we ensure you meet all requirements. With A&A Associate’s help, you can easily set up your crypto business and focus on growth in the UAE’s thriving crypto market.

To get your Crypto License in Dubai, call us at +971 50 483 6190 or email us at info@aaconsultancy.ae