A report released Monday shows that the United Arab Emirates (UAE) recorded $25 billion worth of cryptocurrency transactions in 2022. The country is now adopting regulatory policies to continue further growth in investment.
A report by the Dubai Multi Commodities Centre (DMCC) examined the market potential and opportunities associated with Web3 applications. These applications use blockchain technology to create decentralized digital infrastructure, including cryptocurrencies, decentralized finance (DeFi) and the meta-world.
Metaverse and DeFi Markets ready for expansion
According to the center, the Metaverse market is expected to reach $3.4 trillion by 2027 . The growth is attributed to the potential development of robust use cases and rapid advances in artificial intelligence.
In addition, DMCC forecasts significant expansion in the global decentralized finance (DeFi) market, with projected growth from $13.6 billion in 2022 to $600 billion by 2032. This growth is expected to be driven by increasing demand for efficient and accessible financial services.
Meanwhile, the cryptocurrency market seems poised for a period of stability after a turbulent phase. Bitcoin ‘s resurgence in 2023 is a strong indicator of renewed interest in the industry and institutional circles in long-term and value-generating crypto services.
However, the Center recognized that the future trajectory of these markets largely depends on the regulatory approach taken by governing bodies. Finding the delicate balance between fostering innovation, protecting consumers and mitigating fraud risks will be key .
DMCC And Its Task
DMCC is Dubai’s premier free zone, offering tax breaks and other benefits to attract startups. In 2021, it established a dedicated cryptocurrency center at Jumeirah Lake Towers. The initiative coincides with a surge in crypto startups in the UAE, capitalizing on the region’s aspirations to become the world‘s leading cryptocurrency hub.
The DMCC Crypto Center’s main goal is to foster collaboration and networking opportunities for entrepreneurs in the cryptocurrency and blockchain sectors by providing a collaborative working environment.
Last year, the center expanded its membership base to more than 600 members. Bybit and Solana are among the notable partners.
