UAE Emerges as Crypto Hub Amidst Shifting Sentiments on Trump Policies

The UAE is rapidly establishing itself as a vital hub for cryptocurrency firms, as numerous companies seek to expand operations in Dubai. The TOKEN2049 conference attracted notable speakers, including major industry executives and Eric Trump. Bitcoin has dipped 12% from its peak, raising concerns over the pace of pro-crypto regulations as the crypto market navigates uncertainty due to global trade factors. Despite this, venture capital investment in the sector picked up significantly in the first quarter of 2025, signalling continued interest in cryptocurrencies in the UAE.

In a notable shift, the United Arab Emirates is emerging as a pivotal hub for cryptocurrency firms. This comes as several companies are either setting up offices or looking to expand operations within the region. The interest is palpable, especially as Bitcoin’s recent drop of around 12% from its peak underlines the uncertainty in the global market. Heightened concerns stem from a lack of swift pro-crypto regulatory support under the Trump administration, which has dampened overall sentiment.

On Wednesday, crypto enthusiasts gathered in Dubai for the TOKEN2049 conference, soaking in the sun while mingling with others in the industry. A varied lineup of speakers includes leaders from major crypto firms, senior executives from BlackRock and Goldman Sachs, and Eric Trump. The latter is expected to take the stage on Thursday, underscoring the event’s high profile amid a backdrop of shifting sentiments towards Trump’s influence on cryptocurrency.

Trump’s sudden embrace of crypto has stirred mixed reactions. Once dismissive, he now promises to back the industry, aiming to ease regulations further. His involvement has followed several tumultuous collapses of crypto firms throughout 2022 and a dramatic market surge post-election. However, the optimism is faltering as Bitcoin experiences a rough patch coinciding with ongoing global trade tensions.

Amid the crowd, Miklos Veszpremi, COO of a web3-integrated streaming platform, expressed ambivalence about Trump’s influence. He believes that while the long-term view is cautiously optimistic, it hinges on the global economy’s recovery. There’s a recognition that tariffs might induce hardship before any positive changes can be realised.

Despite attending a conference surrounded by uncertainty, early results in 2025 appear promising for the sector. According to PitchBook, global venture capital investments in the cryptocurrency space surged to US$5.4 billion in the first quarter, marking the highest figures since mid-2022.

Herbert R Sim, sporting a bitcoin-themed jacket, echoed a complex sentiment regarding Trump’s policies. He noted that while it’s difficult to predict, progress on regulatory fronts seems to be evident. His observations come amid a bustling atmosphere as developers and enthusiasts navigate crowded booths, delighting in the conference’s festivities, including zip lining.

The UAE’s appeal as a crossroads for crypto firms continues to grow. Notably, Binance, the largest crypto exchange globally, has strengthened ties in the region after securing a US$2 billion investment from Abu Dhabi’s MGX group. This relationship signals a greater alignment within the UAE’s crypto ecosystem while fortifying Binance’s presence after tumultuous legal challenges faced by its founder, Changpeng Zhao.

Zhao, who faced prison time over money laundering charges, remains a significant shareholder despite stepping down as CEO as part of a settlement agreement of US$4.3 billion. His reception at the conference highlighted the resilience and ongoing interest in crypto.

Always pushing for more crypto integration, UAE authorities are making strides to encourage adoption. Notably, buyers of luxury apartments in a new tower linked to the Trump Organization will have the option to buy with Bitcoin, according to Eric Trump. Additionally, Emirates NBD bank has recently introduced crypto trading via its Liv app, and one of Dubai’s major free zones, the DMCC, is preparing to construct a new “crypto tower” by 2027, signalling robust growth. As one attendee from Germany, Andre Liesenfeld, remarked, “It’s much easier to do business here.”