The cryptocurrency exchange KuCoin has released the findings of a new survey offering insights into the crypto landscape in the United Arab Emirates (UAE). According to the report, the UAE's dynamic crypto landscape is on an upward trajectory despite numerous challenges.
A staggering 59% of crypto users in the UAE see cryptocurrency as a long-term investment, recognizing it as a reliable store of value. Moreover, 35% view crypto as a means to diversify their investment portfolios, while 11% use it as a hedge against inflation.
But, it's not just about investment; 29% of respondents consider crypto a more convenient way to store assets than traditional banks. Additionally, crypto's practicality is evident, with 22% using it for daily payments, 12% for cross-border remittances, and 9% for purchasing NFTs and other digital assets.
Crypto Adoption in the UAE
Alicia Kao, the Managing Director of KuCoin, stated: "Our survey has unveiled the pressing needs and aspirations of the UAE's crypto community. Trust, security, and education are at the core of their concerns. This report not only illuminates their preferences but also solidifies the UAE's position as a leader in the crypto revolution, with a dominant 72% preference for Bitcoin and a strong appetite for blockchain and AI integration."
According to most respondents, security is paramount, with 63% of users emphasizing it when selecting crypto exchanges. Brand reputation (52%) and efficient customer support (47%) are also significant factors. These findings reflect the importance of safeguarding digital assets and the growing discernment of users in the region.
While the UAE's crypto scene is promising, challenges exist. Market volatility, voiced by 52% of respondents, presents opportunities and risks. The most significant challenge is the lack of trust in crypto platforms, cited by 48%. Limited knowledge and education also pose a challenge for 26% of respondents.
The UAE is abuzz with excitement about various crypto innovations. AI and blockchain integration excites 62% of users, reflecting a strong interest in harnessing AI's potential to enhance data analysis and automation within the crypto space. Besides that, blockchain-based identity solutions and decentralized finance capture significant attention.
UAE's Crypto Landscape
Diverse interests are driving the adoption of crypto in the UAE. 55% of the respondents see cryptocurrencies as investment tools. There is also a strong appetite for remittances, everyday transactions, and purchases. Moreover, UAE's users are open to crypto gifting and receiving salaries in crypto.
72% of crypto investors in the UAE prefer Bitcoin, highlighting its global reputation as a reliable store of value. Ethereum is the second choice at 52%, thanks to its versatility and smart contract capabilities. Stablecoins and infrastructure projects also feature prominently in investment preferences.
🇦🇪 #UAE crypto enthusiasts have spoken! 72% choose #Bitcoin. What's driving this trend?
— KuCoin (@kucoincom) October 31, 2023
📊 Uncover the secrets behind this trend with our latest #IntotheCryptoverse UAE report and discover more insights from the country's #crypto landscape. 👇
The UAE boasts several key advantages, including access to funding and capital, a robust financial infrastructure, an open cultural ethos, access to a talented workforce, favorable regulations, and global networks. These factors position the UAE as an emerging epicenter for crypto industry development.
The findings of the survey are corroborated by the growing number of companies setting bases in Dubai. Last year, Komainu secured a minimum viable product license from the Virtual Asset Regulatory Authority. This license allows the company to offer various custody services to clients in the region.
