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In a statement celebrating the growth of the Dubai digital-assets economy, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister of the United Arab Emirates and Ruler of Dubai, announced that the emirate’s virtual asset market has surpassed 2.5 trillion dirhams ($680 billion) in trading volumes as of January 2025.
Sheikh Mohammed credited this milestone to the establishment of the Dubai Virtual Assets Regulatory Authority (VARA), created three years ago to oversee and regulate the rapidly evolving digital-assets ecosystem. “A completely new economic sector has been added to our national economy in just three years,” he said, emphasizing that the initiative positioned Dubai as the world’s largest licensed virtual assets market.
The achievement reinforces Dubai’s growing role as a global hub for digital finance and innovation, a sharp contrast to regions that have taken a more cautious approach toward cryptocurrencies and blockchain technology.
The formation of VARA marked a pivotal moment for the Dubai digital-assets economy, signaling a strategic commitment to fostering innovation through clear and supportive regulation. Since its inception, VARA has licensed and attracted dozens of prominent international companies in the crypto and blockchain sectors, including Bitgo, Nexo, Gate, and Crypto.com.
This regulatory clarity has helped Dubai position itself as one of the most progressive jurisdictions for digital-asset businesses seeking stability and transparency. Unlike in some Western markets, where inconsistent policies have driven firms offshore, Dubai’s approach has created fertile ground for investment and growth.
“Sheikh Mohammed’s vision has enabled Dubai to lead where others hesitated,” said Sergio Goschenko, a senior analyst covering digital economies. “VARA provided the framework that turned potential into measurable economic impact.”
While the Dubai digital-assets economy continues to expand, other nations have struggled with regulatory ambiguity. The United States, for instance, has faced criticism for what many industry leaders describe as a “hostile” stance toward digital assets.
Cardano founder Charles Hoskinson voiced his disapproval of the former U.S. administration’s policies, noting that the country’s restrictive approach had tangible economic costs. “Almost all of this business could have been American,” Hoskinson remarked. “Real numbers and real consequences to the prior regime’s regulatory crackdown, and the continued uncertainty legislative obstruction creates.”
This divergence in policy has allowed Dubai to capitalize on global opportunities, attracting companies and capital seeking clarity and predictability. The emirate’s openness has made it a magnet for firms displaced by tougher rules elsewhere, driving further momentum for the Dubai digital-assets economy.
Looking ahead, analysts predict that the Dubai digital-assets economy will remain one of the strongest pillars of the emirate’s diversification strategy. As global adoption of blockchain and virtual currencies accelerates, Dubai’s early regulatory foresight is expected to yield even greater dividends.
“Sheikh Mohammed’s announcement underscores that the groundwork for Dubai’s next economic era has already been laid,” Goschenko added. “VARA isn’t just a regulator—it’s a catalyst for digital transformation.”
With its reputation as one of the world’s most cryptocurrency-friendly jurisdictions, Dubai’s leadership aims to deepen its integration of digital assets into broader financial systems, further reinforcing its role as a pioneer in global fintech innovation.
As trading volumes continue to grow and new entrants join the market, the Dubai digital-assets economy stands as a model of what deliberate policy design can achieve in a fast-changing digital world.
