Dubai is set for the launch of a new cryptocurrency exchange, according to reports in local media.
The first of its kind in the United Arab Emirates (UAE), the new exchange is being hailed as a landmark development in the maturing Dubai crypto market, as industry, regulators and government continue to chase cryptocurrency business and investment.
As reported in The Gulf Today, crypto firm Crypto Bulls has teamed up with Al Zarooni Group and Gulf Coin Gold to launch the Crypto Bulls exchange, an exchange which will focus on the Dubai market.
Suhail Al Zaroon, chairman of the Al Zarooni Foundation, said the move would help UAE attract investment from more cryptocurrency businesses and investors. He was quoted by the news outlet as saying, “This will be the milestone for getting global investments opportunity from all over the Globe in UAE, as all financial techs [companies] and investors are looking forward in Crypto & Blockchain Industry.”
The new crypto exchange has the backing of the government in UAE, which harbors ambitions of transforming Dubai into a haven for blockchain and cryptocurrency businesses—following the footsteps of jurisdictions such as Malta, South Korea and Singapore.
The government has previously launched its blockchain strategy, which targets 50% of government transactions on blockchain by 2021.
As a result, Dubai has recently seen a number of measures drafted in support of the sector, including new regulation for the sector, as well as the pending launch of a government-backed cryptocurrency.
Shasha Gupta of Crypto Bulls said, “With this unique support from UAE government, Crypto Bulls would be able to attract a huge number of foreign investments in crypto from Asia & Middle East.” He noted that the industry has experienced significant growth in the region in recent years, with strong demand for crypto trading services from within Dubai.
The exchange will allow investors to trade against local currency Arab Emirate Dirham, although it remains unclear as to which specific currency pairs will be supported at launch.
The development is being seen as a positive step towards turning Dubai into a crypto hotspot, at a time of increasing competition from rival jurisdictions.
Over the past year, Bitcoin and Cryptocurrency trading exploded onto the scene. Crypto millionaires were made overnight, memes of crypto traders flooded the internet, and many foresaw no end in sight. A plethora of cryptocurrencies rose to prominence including Ethereum, Neo, IOTA, Cardano, NANO, and many more; all touting unique capabilities and keen differences in the decentralized movement. Popular cryptocurrency exchanges such as Bittrex and Binance also rose to prominence during this time.
During the month of December in 2017, the total cryptocurrency market cap doubled from ~$300bn USD to over $600bn USD. Since this time, the hype has died down, and prices of Bitcoin and other cryptocurrencies have come back to earth. Many ‘no coiners’ have exclaimed that the bubble has burst, and the total market cap of all cryptocurrencies has hovered around $250bn USD the past 3 months. Bitcoin’s current price is $6,684 USD, which is still a massive %1,012 increase from its price of $601.71 USD two years ago today.