Abu Dhabi Attracts Crypto Companies with Eager Investors and Friendly Regulators

According to Bloomberg, Abu Dhabi is becoming a popular destination for crypto companies seeking eager investors and friendlier regulators, as major markets like the US experience an absence of both. Companies cite a growing network of partners and developing government policy as advantages to basing themselves in the city, in addition to deep-pocketed investors. While neighboring Dubai established a crypto-specific watchdog called the Virtual Assets Regulatory Authority (VARA) in March last year, officials in Abu Dhabi have been making a concerted play for the young industry’s attention. Copper, a UK-headquartered crypto custodian, debuted a new unit offering tokenized securities in Abu Dhabi last month. The longevity of Abu Dhabi’s financial regulator, which celebrated its 10th birthday this year, has also been an attractive quality. It’s more highly respected by global, traditional financial clients than Dubai’s VARA, according to Walter Hessert, head of strategy at stablecoin operator Paxos. However, Dubai’s VARA still has far more firms registered in its ecosystem. Companies based in the UAE raised $462.3 million from venture capital firms so far this year as of the end of September, compared to $704.5 million in the UK and $2.8 billion in the US. Some businesses are planning to get the best of both worlds, with a license in Dubai providing firms with permission to service UAE clients locally, while approval from ADGM is more suited to those seeking to cater to clients overseas.