Firms flock to UAE as regulatory clarity, tax benefits and booming investment fuel the emirate’s rise
As Singapore imposes strict new rules on overseas crypto activity, Dubai is fast becoming the global hub for digital assets. With regulatory flexibility, tax incentives, and record investments, the emirate cements its status as a top destination for blockchain firms.
Dubai is rapidly solidifying its position as a global hub for cryptocurrency, as major players in the digital asset space turn their attention to the emirate following regulatory tightening in Singapore.
Over the past three years, the UAE has crafted a comprehensive regulatory framework for digital assets, attracting global crypto firms seeking stability, innovation, and a favourable business environment. The shift comes as Singapore’s Monetary Authority recently introduced sweeping restrictions on overseas crypto activities.
Under the new regulations, all crypto service providers incorporated in Singapore and serving international clients must obtain a Digital-Token Service Provider licence by 30 June 2025. Failure to comply could result in fines of up to SGD 250,000 (Dh734,500) and up to three years in prison. Crucially, the rules include no grace period or exemptions for smaller operators, prompting what industry insiders have dubbed a “crypto exodus.”
“This is effectively a moratorium on fresh licences, hence the migration,” said Vikram R Singh, CEO of blockchain consultancy Antier, which has recently expanded its operations to Dubai’s International Free Zone Authority (IFZA). “Singapore is tightening the screws, while Dubai is opening the door wider.”
Dubai’s business-friendly environment has become a major draw for both individual investors and corporate entities. According to global compliance consultancy Sumsub, the UAE attracted over $30 billion in crypto investment during 2024 alone, setting a new regional benchmark.
The UAE’s tax regime is another significant incentive. Individual investors are exempt from income and capital gains tax on crypto profits, while companies operating from designated free zones can significantly reduce the new 9 per cent federal corporate tax, provided their revenues are generated outside the country.
In addition, the UAE offers a uniquely flexible regulatory structure. While federal authorities oversee digital asset activities on the mainland, several free-zone regulators — including the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), and IFZA — maintain their own crypto frameworks.
“This multi-regulator environment allows founders to pick the oversight that best fits their business model,” Singh explained, describing the UAE as “possibly the most pragmatic and adaptive crypto jurisdiction in the world right now.”
Dubai’s credentials as a global crypto hub were further enhanced in April with the hosting of TOKEN2049, the world’s largest cryptocurrency event. The conference attracted nearly 15,000 delegates from over 4,000 companies, underscoring the emirate’s growing influence in the blockchain and digital finance sectors.
The city is also witnessing significant infrastructure development to support the industry. Emirates NBD’s Liv digital bank and Abu Dhabi’s MGX fund are jointly backing the construction of a 30-storey “Crypto Tower” within the Dubai Multi Commodities Centre (DMCC), which will house crypto start-ups, accelerators, and venture capital firms.
Dubai’s regulators are equally proactive. The Dubai Financial Services Authority (DFSA) recently issued updated guidance on tokenised securities and real-world assets, a move widely seen as paving the way for greater institutional participation. Singh confirmed that Antier is already collaborating with UAE partners to establish marketplaces for tokenised assets in alignment with the nation’s digital economy strategy.
“Dubai’s proactive stance perfectly matches our infrastructure for real-world asset tokenisation and digital asset trading,” Singh added. “As tokenisation reshapes global finance, we intend to provide the bridge between traditional markets and Web3.”
With major exchanges like Binance, Crypto.com, and OKX already operating in Dubai, experts believe Singapore’s clampdown will only accelerate the emirate’s rise as a global leader in blockchain innovation, digital finance, and tokenised markets.
As the international crypto community seeks regulatory certainty and operational efficiency, Dubai’s combination of robust oversight, entrepreneurial freedom, and strategic location is proving hard to resist.
