Digital Assets in GCC: The Battle For The Future Of Finance!
- Oct 4, 2025
- 7 min read
October 2025
by Simon Hardie (Mingzulu Pioneer | CEO, Findexable)
Among the world’s fastest growing regions, economic growth is giving the countries of the GCC the confidence to take bold bets on the future of finance - unlocking a new capital corridor for digital assets. And creating first-mover advantages for traditional financial institutions with the foresight - and infrastructure readiness - to make the leap.
ASSETS:
GCC DIGITAL ASSETS CHECKLIST
DIGITAL ASSET REGULATORY OVERVIEW
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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):
UAE: ADGM (Abu Dhabi), DIFC (Dubai freezone), or VARA (Dubai mainland).
Bahrain: Central Bank of Bahrain (CBB) jurisdiction.
Define Activities Requiring Licensing:
Crypto Custody
Broker / Exchange / OTC
Token Issuance / STOs
Stablecoin / DeFi Platform
Advisory/Investment Management
✅ Section 2: Entity & Licensing Setup
Select and Register a Local Entity:
Free Zone company (e.g., in ADGM, DIFC)
Bahrain Commercial Registration (CR)
Apply for Regulatory License:
VASP License – VARA (Dubai)
FSP License – FSRA (ADGM) or DFSA (DIFC)
CBB Crypto Asset Operator License (Bahrain)
Prepare Required Documentation:
Corporate structure & ownership
AML/CFT compliance procedures
Business plan & revenue model
Cybersecurity & information governance policy
✅ Section 3: Infrastructure & Banking
Secure Office Space:
Demonstrate local “economic substance” as required by regulators
Open Banking & Custody Relationships:
Apply for a local business bank account
Consider licensed custody partnerships (e.g., in ADGM)
Data Hosting & Technology Localisation:
Understand data residency rules (especially in ADGM, DIFC)
✅ Section 4: Talent, Visa & Local Operations
Appoint Key Role Holders
CEO/Managing Director (with regional experience ideally)
Compliance Officer & MLRO
Finance & Operations
Lead Apply for Residency Visas
UAE Golden Visa or Employment Visa (Free Zone)
Bahrain Fintech Talent Stream
Comply with ESR and UBO Rules
Register Ultimate Beneficial Owner
File substance declarations if required Hire Local Staff or Appoint Nominees
Hire Local Staff or Appoint Nominees
Consider local partnerships for faster market entry
Prepare Emiratization/Bahrainization plans if required
✅ Section 5: Ecosystem, Partnerships & Growth
Join Local Fintech Communities:
ADGM Hub71
Bahrain FinTech Bay
MENA Fintech Association
FinTech Tuesdays
Explore Sandbox or Accelerators:
ADGM RegLab
CBB Regulatory Sandbox
DIFC FinTech Hive
Attend or Sponsor Industry Events:
GITEX Global / Future Blockchain Summit (Dubai)
Dubai Fintech Summit
FinTech Abu Dhabi / Abu Dhabi Finance Week
Manama Fintech Forum (Bahrain)
Engage with Government Trade Bodies:
UAE’s Ministry of Economy
EDB Bahrain Establish
Legal & Compliance Advisors:
Regional law firm with fintech/crypto licensing experience
Ongoing AML, tax, and legal support
Market Intelligence & Localisation:
Analyse Local Use Cases:
Which sectors are adopting digital assets (real estate, remittance, energy, family offices)?
Consider Shariah Compliance (if relevant):
Some investors require token review by Islamic scholars
Local Branding and Arabic Content:
Translate key materials for outreach
Understand marketing/content regulations from VARA or CBB
YOU CAN GET HOLD OF US TO DISCUSS MORE HANDS ON SUPPORT IF NEEDED:
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