In 2018, the FSRA (Financial Services Regulatory Authority) introduced regulated activities governing the operation of crypto assets in Abu Dhabi. This enabled companies to establish crypto-asset exchanges, serve as depositaries, act as brokers for crypto assets, and participate in crypto investment activities within the ADGM (Abu Dhabi Global Market).
The most popular crypto exchanges are eToro, OKX, Binance, and Huobi. BINANCE boasts an average 24-hour trading volume of $76 billion and currently supports more than 350 cryptocurrencies. Additionally, the platform provides an integrated NFT wallet for the storage of digital assets.
The United Arab Emirates is a tax-free nation, devoid of income, wealth, or capital gains tax. Whether residing in Dubai or Abu Dhabi, individuals are not obligated to pay income tax on cryptocurrency.
In recent years, the cryptocurrency market has experienced significant growth, leading to increased tax obligations for investors. However, relocating to Dubai in the UAE provides an opportunity to avoid taxes imposed by Western countries, as Dubai offers full exemption from taxes.
Abu Dhabi welcomes a mining project called 'Abu Dhabi Global Markets JV Entity'.
Marathon Digital Holdings and Zero Two announced a new mining venture in the Middle East on May 9. Marathon and Zero Two have established a new entity called Abu Dhabi Global Markets JV Entity, which will operate the two crypto-mining sites.
The primary mining facility will be in Masdar City, Abu Dhabi, with a 200 MW energy capacity. A second site in Mina Zayed, Abu Dhabi, will have a 50 MW energy capacity. Both sites are projected to be operational by the end of 2023, collectively producing a hash rate of 7 EH/s.
Marathon and Zero Two aim to enhance Abu Dhabi's energy grid sustainability by utilizing its surplus energy for a mining initiative. They intend to offset any non-sustainable energy use through the purchase of clean energy certificates. The mining operation is set to receive $406 million in capital investment, with both companies already in the process of acquiring necessary equipment and infrastructure.
Abu Dhabi establishes a comprehensive regulatory framework for Digital LEDGER Technology (DLT).
The Abu Dhabi Global Market's Registration Authority (RA) has unveiled specialized regulations, the Distributed Ledger Technology (DLT) Foundations Regulations 2023, on Nov. 2, aiming to provide regulatory clarity for the crypto industry. The initiative seeks to position Abu Dhabi as the UAE's second crypto hub, alongside Dubai.
With the new regulations in place, Decentralized Autonomous Organizations (DAOs) and other digital ledger entities are now permitted to operate legally in the Emirate, allowing them to issue tokens to their members.
Phoenix Group, a Bitcoin mining company, experiences a successful $2.47 billion trading debut in Abu Dhabi, marking a 50% increase.
On December 5, 2023, Phoenix Group, a Bitcoin miner headquartered in the Middle East, achieved the honor of being the first cryptocurrency-related company to go public on the Abu Dhabi Securities Exchange (ADX).
Phoenix Group also established a strategic initiative, notably a joint venture with the Abu Dhabi government, solidifying its status as a major BTC miner in the Middle East.
