Dubai is the second largest cryptocurrency hub in the world, behind London, which topped the list, and ahead of New York, Singapore and Los Angeles, according to a recent study published by Coin Telegraph.
The Cryptocurrency Adoption Readiness Index prepared by Recap, a tax software company, came to this conclusion, after tracking eight different points of data, which belong to the 200 most populous cities in the world. The data studied included the number of businesses and employees in Sector, quality of life and industry-related events, as well as the amount spent on research and development as a percentage of GDP.
Thanks to its zero-rate tax policy, high quality of life, and a huge number of 772 cryptocurrency companies, Dubai has become an attractive location for investors in the cryptocurrency space.
The report noted that Dubai has ranked second as it strives to become a leading hub for cryptocurrency and blockchain technology in the Middle East, a year after the imposition of new laws regarding cryptocurrency exchanges operating in the city.
In March 2022, Sheikh Mohammed bin Rashid Al Maktoum, the UAE Prime Minister and Ruler of Dubai, announced the launch of a new law and the establishment of the Virtual Assets Regulatory Authority (VARA), to better oversee the virtual assets sector in the emirate.
Since then, Dubai's Cryptocurrency Regulatory Authority has given initial approval to global exchanges and companies, such as Binance, Crypto.com, Paybit and others, however these entities will need to secure a Full Market Product (FMP) license to become fully licensed and allowed to operate within the city.
Notably, the Dubai government plans to launch its own digital currency by 2026, which makes it very good to see Dubai as the second largest crypto hub in the world.
Other cities in the Middle East such as Kuwait City (16th), Tehran, the capital of Iran (17th), Riyadh (22nd) and Jeddah (25th) also made the same list.
