October 2025
by Simon Hardie (Mingzulu Pioneer | CEO, Findexable)
ASSETS:
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Since the beginning of the decade the GCC - particularly Bahrain and the UAE - have been steadily unlocking a new capital corridor for digital assets, blending regulatory maturity, sovereign support, and financial sector transformation.
It’s a shift and a focus that has seen the growth and success of homegrown exchanges such as Bahrain-based CoinMENA, and Dubai’s global arrival as a key axis for the Web3 and digital assets ecosystem by being chosen as Binance’s MENA headquarters (and possibly eventually its global HQ) along with dedicated freezones like DIFC and DMCC (home to over 500 blockchain businesses) for crypto and Web3 startups.
Regulatory clarity (see Comparing Rules, below) has helped, and explains the influx of startups from the region and all over the world.
Fig 1: Comparing Rules
Region
Jurisdiction/Hub
Regulatory Landscape
Estimated Market Size / AUM (2024)
Key Changes or Events (Past Year)
Example Key Companies / Projects
USA
New York / Wyoming
- NYDFS BitLicense regime (NY) - Pro-crypto legislation and DAOs recognized (Wyoming)
~$1.2 Trillion across US
- FIT21 crypto framework bill passed by U.S. House (2024) - SEC vs Ripple outcome increases clarity
- GENIUS Act (2025) Regulatory regime for stablecoins
- Coinbase (NY) - Kraken (Wyoming) - ConsenSys
Europe
Switzerland (Zug)
- Pro-crypto; clear AML frameworks; "Crypto Valley" - FINMA regulates digital asset firms
~$300 Billion+ in digital assets
- Swiss banks expand crypto services - Increased licensing under DLT Trading Facility rules
- Ethereum Foundation - SEBA Bank - Sygnum
Asia
Singapore
- MAS requires licensing under PS Act (Payment Services Act) - Stable regulatory climate
~$400+ Billion AUM incl. institutional and retail
- Clarification on stablecoins regulation - FTX assets redirected to MAS-compliant firms
- Crypto.com - Matrixport - DBS Digital Exchange
Asia
Hong Kong
- Introduced mandatory licensing regime (2023-24) for crypto exchanges - Pro-Web3 stance backed by HKMA
~$150 Billion AUM (projected)
- JPEX scandal led to enhanced licensing scrutiny - 17 firms receive licenses under new VASP framework
- HashKey Exchange - OSL - Animoca Brands
MENA
UAE (ADGM / Dubai)
- VARA (Dubai), FSRA (Abu Dhabi Global Market): comprehensive VASP rulebooks, risk-tiered authorizations
~$25–30 Billion AUM and growing
- Binance granted MVP operational license in Dubai (2024) - Global firms relocate from Asia/EU to UAE
- Binance MENA HQ - MidChains - Fasset
MENA
Bahrain
- CBB adopted clear crypto asset rules since 2019 - Encourages tokenization and DeFi pilots
~$2–5 Billion
- Licensing new VASPs incl. open banking participants - Strategic collaborations with regional banks
- Rain Financial - CoinMENA
But it’s not just innovative startups that are seizing the opportunity to leverage favourable regulation and a geostrategic advantage (a region within a 4-hour flight of 2 billion+ consumers, an area that includes countries markets with some of the highest rates of adoption of digital assets and cryptocurrency).
Getting in on the action
Traditional banks, insurers, and asset managers - especially those ready to integrate compliance-first Web3 infrastructure - have a significant first-mover opportunity in shaping the regional digital financial system.
Despite the hype, growth is starting from a low base. Relative to other financial and digital asset hubs; the region’s digital asset ecosystem is still small.
Estimates for Digital Assets under Management (an estimate based on regional crypto holdings, trading volumes, and custody data publicly available or estimated based on market actors) in the region’s two primary hubs for digital assets of Bahrain and the UAE are in the region of $30 billion. A drop in the ocean compared to an estimated $400 billion in Singapore or the $1.2 trillion in the USA.
But it’s growing fast and growing in recognition.
Growing up
In 2023 Roland Berger named UAE the second jurisdiction globally for digital asset readiness, just after Switzerland and crypto analytics firm Chainalysis ranked the UAE in the Top 20 countries in its 2023 Global Crypto Adoption Index, with MENA the fastest-growing region for crypto adoption.
It’s a position and potential that’s already caught the attention of a wide range of regional banks.
Fig 2. The Response From GCC Banks
Country / Jurisdiction
Financial Institution
Activity
🇦🇪 UAE (Abu Dhabi, Dubai)
ADCB (Abu Dhabi Commercial Bank)
Running tokenisation pilots; engaging in Real World Asset (RWA) finance structures
First Abu Dhabi Bank (FAB)
Exploring asset tokenisation use cases and digital infrastructure projects
ADGM (Abu Dhabi Global Market)
Licensing banks and fund managers for virtual asset custody, trading, and advisory services
Emirates NBD
Exploring blockchain identity, smart contracts, cross-border payments (via DIFC and Dubai Future Foundation)
RakBank
One of first UAE banks to enable digital asset payment rails (with Kraken, Binance Pay)
🇧🇭 Bahrain
Arab Bank
Launched digital asset custody & trading in partnership with licensed exchanges / fintechs
Central Bank of Bahrain (CBB)
Regulatory leader – licensed Rain, CoinMENA; supports FI-exchange integration
GFH Financial Group
Investing in digital asset platforms; structuring tokenised Islamic finance products
🇸🇦 Saudi Arabia
SNB (Saudi National Bank) & Riyad Bank
Participating in sandbox initiatives and Banking-as-a-Service platforms to support tokenised finance infrastructure
Neom Tech & Digital Co.
Issued digital bond tokenisation pilots and partnered in regional Web3 infrastructure development (via NEOM Investment Fund)
While some of these initiatives might be dismissed as tinkering at the edges, the breadth of experimentation and the focus on real world use cases - from cross border transfers to custody and green sukuks - is helping to set the region apart.
Standard Chartered Ventures’ (the corporate venture arm of the global bank) investment in Zodia Custody licensed in ADGM, in Abu Dhabi - to build a digital asset custodian, is one example of how innovators and institutions are coming together under the umbrella of local regulators.
Dive in?
There can be little doubt that the GCC - as a home to patient capital and an enabler, accelerator of innovation - is having its moment.
And as the region’s growing confidence, and clout, puts it at the heart of a new world of global trade and digital finance, global institutions and innovators with the foresight (and the foundations) to exploit it have a unique opportunity to shape the future.
If you're a digital assets or financial innovation firm looking to start operations or open an office in the GCC - especially in the United Arab Emirates or Bahrain - you're entering one of the world’s most proactive and fast-evolving regulatory environments for fintech and Web3.
However, regional dynamics, cultural nuances, regulatory frameworks, and licensing models must be well understood. Use the GCC Market Entry Checklist below to help you navigate the first steps or come talk to us to find out why now. And what you can do about it.
GCC Market Entry Checklist
Thinking about the GCC for the first time or as part of the next stage of expansion? Use our quick checklist to navigate the first steps of your journey or identify gaps in your launch strategy.
GCC MARKET ENTRY CHECKLIST For Digital Assets & Financial Innovation Firms (UAE & Bahrain):
✅ Section 1: Strategic Readiness
Define Expansion Objectives:
Are you launching for growth, capital raising, R&D, client onboarding, or regulatory alignment?
Choose Target Jurisdiction(s):
Define Activities Requiring Licensing:
✅ Section 2: Entity & Licensing Setup
Select and Register a Local Entity:
Apply for Regulatory License:
Prepare Required Documentation:
✅ Section 3: Infrastructure & Banking
Secure Office Space:
Open Banking & Custody Relationships:
Data Hosting & Technology Localisation:
✅ Section 4: Talent, Visa & Local Operations
Appoint Key Role Holders
Lead Apply for Residency Visas
Comply with ESR and UBO Rules
Hire Local Staff or Appoint Nominees
✅ Section 5: Ecosystem, Partnerships & Growth
Join Local Fintech Communities:
Explore Sandbox or Accelerators:
Attend or Sponsor Industry Events:
Engage with Government Trade Bodies:
Legal & Compliance Advisors:
Market Intelligence & Localisation:
Analyse Local Use Cases:
Consider Shariah Compliance (if relevant):
Local Branding and Arabic Content:
YOU CAN GET HOLD OF US TO DISCUSS MORE HANDS ON SUPPORT IF NEEDED:
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