This article was originally published here.
It is well-known at this point that certain places in the world differ with regards to their attitude to cryptocurrency. One of the places in the world that is particularly friendly towards cryptocurrency is the Middle East as evidenced by the fact that both the United Arab Emirates and Saudi Arabia are working on a joint cryptocurrency to help settle cross-border transactions. It has also been estimated that the UAE has been the world’s biggest contribution to token sales since the start of this year and contributed 25 percent of funds in total.
There has been a strategic and consistent effort by Middle Eastern governments to put themselves at the forefront of crypto activities and to stay ahead of the curve likely having seen the benefits enjoyed by countries such as Malta due to their cryptocurrency and blockchain activities. This has led to many people and blockchain firms moving base to the Middle East as regulatory policies are generally friendly and the market is starting to Bloom.
The latest development in the UAE crypto space is Arabian Bourse (ABX) which is a new crypto asset exchange who have gained initial regulatory approval from the financial services regulatory authority of Abu Dhabi global market. This new exchange is part of the joint venture between the GMEX group and Arshad Khan. The news was officially reported on June 6, 2019.
The exchange in question has a large firm behind it as the GMEX Group is a set of firms that offer multi-asset exchange trading and various business and technological solutions. The new exchange is to serve as a fully regulated crypto asset exchange and custodian and will focus most of their attention and international institutional and retail traders. This can be seen as them casting a wide net as both retail and institutional traders have their part to play in cryptocurrency and have given a significant push to the industry.
ABX will implement technology for GMEX group’s blockchain business and will make specific use of the hybrid centralized and blockchain distributed Ledger technology Solutions which is popularly called bg&e exclusion. ABX, from all indications, will be an integrated ecosystem consisting of total assets trading and settlement with associated digital currency as well as depositary and data services. The end goal will be to bridge the crypto activity in the Middle East and North Africa on other international crypto centers while still developing the industry within the UAE. The exchange will be based within the UAE and is expected to begin operations soon.
The UAE is creating an environment in which people feel confident to come in and to conduct their businesses because they are assured that regulatory will be welcoming towards them and that the market is primed.
Meanwhile, there has been discussion around the maturity of the crypto industry and the forthcoming with of adoption that will push it to the next level. Many countries are recognizing this ahead of time and are trying to create an environment where they can get in on the action and benefit from the upcoming crypto adoption. Malta was one of the first to do this and the middle east is following suit and from all indications, Europe is starting to increase their efforts in this regard. Should these predictions be correct and the right infrastructures be put in place ahead of time, we could be seeing the next major business hubs take root in places like these.
Also because certain countries are taking the opposite approach and becoming more hostile towards cryptocurrencies such as countries like China and India there will likely be a pattern in which firms relocate en masse to places like the Middle East and Europe to take advantage of better regulations.