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Cryptocurrency and the Middle East Countries

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Among the twenty countries that lie in the Middle East region are Dubai, Saudi Arabia, Bahrain, Syria, Israel, Iraq, Qatar, Oman, and Kuwait. Learn about bitcoin’s¬†influence on other cryptocurrencies.

Few countries find it a good technological and innovative step while others doubt its transparency. By producing 7.1% of total global trading volumes, Middle East countries are considered the fastest growing crypto market.

Dubai and Bahrain accepted the cryptocurrency looking at the changing trend in the digital world. Whereas other countries like Saudi Arabia, Kuwait, Qatar, and Oman have strongly condemned it and mentioned the risks of being highly volatile, that is the prices of each coin vary from time to time, money laundering, and cyber security threats like hacking.

Cryptocurrency and Dubai

Sheikh Mohammed bin Rashid Al Makhdom, Dubai’s ruler, has accepted cryptocurrency and considered it an innovative step. By the regulation of the cryptocurrency’s first law, Dubai has positioned itself in the list of countries that believe in virtual assets.

The U.S Kraken is about to open its first headquarters in Abu Dhabi as soon as the regulation process completes.  Kraken is the first cryptocurrency exchange that offered direct trading in Dirhams while competing with Bitcoin and Ether and the entire virtual assets. While looking at the increasing trend in digital assets, Binance and others like Buybit are also about to open in Abu Dhabi.

Crypto’s acceptance in Dubai alerted the other countries and Dubai has now come under the Grey list of the countries. This is due to the fact that cryptocurrency is a digital currency and cannot be validated, that is it is not transparent.

However, Dubai Virtual Asset Regulatory Authority (VARA) has created terms and conditions on regulating it where there will be a proper check on transactions and this will be for assets not for payment purposes.

Cryptocurrency and Bahrain

The Central Bank of Bahrain (CBB) has legalized the Binance for trading. Binance is considered the largest money exchange of Cryptocurrency. While doubting its transparency Bahrain has created special rules and regulations that are mainly focused on ruling out the doubts about money laundering.

Cryptocurrency and Saudi Arabia

Saudi Arabia has rejected accepting crypto, doubting its transparency. It has not accepted Bitcoin mentioning that it has chances of money laundering as it has not been monitored. Saudi Arabia is planning to issue its own digital currency from which the transactions would be made.

Cryptocurrency in Oman

Oman also does not support cryptocurrency. Cryptocurrency is legal but it is unregulated. It further threatens Omanis that it has no surety and that they should be cautioned while buying and trading. However, Oman Bank has not supported it at all stating the risks of cyber security and money laundering.

Cryptocurrency and Qatar

Cryptocurrency is considered illegal in Qatar and the Qatar Bank has specifically issued a letter to all the banks clearly citing that trading of any cryptocurrency is illegal. They have referred to the risks as crypto being highly volatile in nature and the financial insecurity.

Cryptocurrency and Kuwait

Kuwait also does not support cryptocurrency and considers it illegal. It has strictly passed the orders to the banks that they cannot send or accept any of the cryptocurrency. The central bank of Kuwait also cited that they will be issuing their e- currency to fulfill the needs of the country and to facilitate its nation.

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